WeRide, a China-based self-driving technology company, saw its shares soar by 19% on their Nasdaq debut on Friday, following an initial public offering (IPO) and private placement that together raised a total of $440.5 million.
The successful listing comes amid a rejuvenation of U.S. investor interest in Chinese companies, buoyed by a resolution to a longstanding audit dispute between China and the United States reached in December 2022.
“This change signals that companies in hot sectors are going to get attention wherever they’re from,” said David Manno, partner at securities law firm Sichenzia Ross Ference Carmel. “There’s so much enhanced disclosure that I don’t think it’s going to be an issue for Chinese companies going public in the U.S.”
WeRide’s IPO reflects broader optimism within the U.S. IPO market, which has shown renewed momentum after a two-year slowdown. “The bottleneck in 2022-2023 has built up the pipeline,” noted Matt Kennedy, senior strategist at IPO research firm Renaissance Capital. “I don’t see this deal as having a big impact on the broader tech sector, but it is definitely a meaningful data point for other autonomous vehicle startups and China-based companies.”
In the offering, WeRide issued 7.74 million American depositary shares at $15.50 each. The company’s valuation now exceeds $4 billion, bolstered by an additional $320.5 million secured in a private placement.
Known for its autonomous taxis, vans, buses, and street sweepers, WeRide is conducting trials and commercial operations across 30 cities in seven countries. In August of this year, the company received authorization to conduct passenger trials with its autonomous vehicles in California, marking a significant milestone in its global expansion.
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China's self-driving startup WeRide shares surge 19% in Nasdaq debut
cgtn.com
