WeRide, a Chinese self-driving start-up, has officially filed for a US$119.4 million initial public offering (IPO) on Nasdaq. The company plans to offer 6.5 million American depositary shares priced between US$15.5 and US$18.5 each, aiming for a valuation of up to US$5.02 billion. This IPO marks a significant moment as it follows a prolonged dry spell for Chinese IPOs in the U.S. since Didi Global's delisting in 2022 [cb28ae8f].
Founded in Silicon Valley in 2017, WeRide launched its robotaxi service in Guangzhou in 2019 and has since expanded its operations. In addition to its IPO, the company is also seeking to raise US$320.5 million through a private placement, indicating strong investor interest in the autonomous vehicle sector [cb28ae8f].
Meanwhile, Didi Global Inc. has denied rumors of a Hong Kong IPO and stated that it is focusing on its core business, recovering from a setback in 2021 when regulators launched an investigation into its data handling practices, leading to its delisting from the New York Stock Exchange. Despite these challenges, Didi plans to have a public listing in Hong Kong this year and has repurchased approximately 14.9 million American Depositary Shares (ADSs) for about US$54.4 million under its US$1 billion share buyback program [752f11b8].
In other developments, TikTok's Chinese parent company is attempting to overturn a new U.S. law that seeks to ban the app, claiming that the bill was passed following classified briefings [752f11b8]. Smaller ride-hailing platforms in China continue to struggle amidst the dominance of Didi Global, while a crackdown on Alipay and WeChat Pay's smaller peers has further consolidated the market [752f11b8].
In a separate incident, a man surnamed Liu and his father planned a road trip from Beijing to Zhangjiajie in Hunan province, sharing the journey with a third-party passenger found through the hitchhiking service Hellobike. The passenger, however, fled without paying his share, leading Liu to report the incident to the police after multiple failed attempts to recover the fare [968aa182].
WeRide's recent approval from the California Public Utilities Commission (CPUC) to test its driverless vehicles with passengers adds to the excitement surrounding the company. This permit allows WeRide to ferry passengers in test vehicles, although it cannot charge fares or offer rides to the general public yet [6ad6a09c].
Overall, WeRide's upcoming IPO and the developments surrounding Didi Global and other ride-hailing services reflect a dynamic and evolving landscape in China's tech and transportation sectors, as companies navigate regulatory challenges and market opportunities [cb28ae8f].