According to a term sheet obtained by Reuters on Wednesday, WeRide, a Chinese self-driving firm, has applied for a $119.4 million IPO on the Nasdaq and a $320.5 million private placement.
The Guangzhou-based business will raise up to $119.4 million by offering 6.5 million American depositary shares at a price between $15.5 and $18.5 per. Additionally, it intends to raise about $320.5 million through a private placement at the same time.
While the Biden administration was expected to propose banning Chinese software in U.S. autonomous vehicles, the autonomous driving startup had stated in August that it would aim for a valuation of up to $5.02 billion as part of its first public offering (IPO).
Last year, China’s securities authority approved the company’s IPO in the US.
It was formed in the Cayman Islands after being founded in Silicon Valley in 2017. In 2019, it introduced a robotaxi service in Guangzhou, China.
In anticipation of WeRide’s possible listing, investors have been watching for indications of a surge in Chinese initial public offerings (IPOs) in the United States.
After the massive ride-hailing company Didi Global was forced to delist in 2022 due to pressure from Chinese regulators, Chinese initial public offerings (IPOs) in the United States have slowed down in recent years.
Since Didi’s in 2021, the IPO would rank among the biggest Chinese company listings in the United States. This year, it would be the second significant Chinese corporation to apply for U.S. listing. Zeekr (ZK.N), a manufacturer of electric vehicles, made its debut on the New York Stock Exchange in May.