WeRide, a self-driving company based in the Chinese mainland, experienced a remarkable 19% surge in its shares following its Nasdaq debut on Friday. The initial public offering (IPO) and a private placement collectively raised a total of $440.5 million, marking a significant milestone for the company.
This successful listing highlights the improving sentiment among U.S. investors towards companies from the Chinese mainland. This positive shift follows the resolution of a longstanding audit dispute between China and the U.S. in December 2022, paving the way for enhanced disclosure and confidence in Chinese companies seeking to go public in the United States.
David Manno, a partner at securities law firm Sichenzia Ross Ference Carmel, commented on this trend, stating, \"Companies in hot sectors are going to get attention wherever they're from,\" and added, \"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 successful IPO also reflects a broader optimism within the U.S. IPO market, which has regained momentum after a two-year hiatus. Matt Kennedy, senior strategist at IPO research firm Renaissance Capital, noted that \"the bottleneck in 2022-2023 has built up the pipeline.\" He further stated, \"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 IPO, WeRide issued 7.74 million American depositary shares at $15.50 each, bringing the company's valuation to over $4 billion. Additionally, a private placement secured $320.5 million.
WeRide is renowned for its autonomous taxis, vans, buses, and street sweepers, and is conducting trials and commercial operations across 30 cities in seven countries. In August, the company received authorization to conduct passenger trials with its autonomous vehicles in California, marking another step forward in its expansion and technological advancements.
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China's self-driving startup WeRide shares surge 19% in Nasdaq debut
cgtn.com
