IPO WeRide: Shares of Chinese robotaxi began trading
Background
Chinese company WeRide Ltd, backed by auto parts supplier Yanfeng Automotive Trim Systems Co Ltd, started trading shares on the Nasdaq stock exchange on Thursday under the ticker “XEV” and raised $216 million with the initial public offering.
WeRide Chief Executive Officer Tony Han told CNBC that, “The proceeds from the IPO will be used to accelerate our technology development, expand our autonomous driving fleet size, build sales and service networks, and enhance our operational capabilities.”
The shares continued falling in afternoon trading, below the IPO price of $11.8 per share after the Guangzhou-based company raised less than initially planned.
IPO WeRide: Deal terms
The company had offered 15m shares in the IPO, short of its original target of 18.4m. It was initially seeking to raise up to $240m by selling the shares at between $12 and $14 each, but later cut the price range to $11.5–$12.
WeRide initially anticipated selling 18.4 million shares at a price range of $12 to $14 each. However, it later lowered the price range to $11.50 to $12 and offered 15 million shares.
The IPO grants WeRide a market capitalisation of roughly $1.2 billion, based on the offering price. The company said it plans to use the proceeds to expand its fleet of autonomous vehicles and advance its technology.
WeRide business strategy
WeRide is among various self-driving technology companies that have recently taken the public route to raise capital. In February 2021, Baidu, an internet search giant, completed the $1.8 billion spin-off of its autonomous driving unit.
WeRide has been testing its robotaxis in several cities in China and plans to shortly begin trials in the United States, Han said.
Key takeaway
WeRide is a Chinese autonomous driving technology company that recently launched shares on the Nasdaq stock exchange. Despite the fact that the company raised less than anticipated in its initial public offering, it still managed to raise $216 million. WeRide has intentions to use the funds to improve its technology, expand its fleet, and grow its business.
