Chinese robotaxi firm WeRide eyes up to $5 billion valuation in US IPO By Reuters

(Reuters) -China-based autonomous driving startup WeRide said on Friday it was seeking a valuation of as much as $5.02 billion in its initial public offering in the United States.

The IPO announcement comes at a time when the Biden administration is expected to propose barring Chinese software in autonomous and connected vehicles in the United States in the coming weeks.

Self-driving technology remains experimental with robotaxi companies facing technical and regulatory hurdles. China, however, has moved aggressively to green-light trials compared to the United States.

WeRide is aiming to raise as much as $119.4 million by offering 6.45 million American depositary shares at a price range of $15.50 and $18.50 per share.

Certain investors have also agreed to purchase shares worth $320.5 million in WeRide in a concurrent private placement that is subject to the completion of the IPO.

Such investors include Alliance Ventures BV — the venture capital fund of the Renault (EPA:) Nissan (OTC:) Mitsubishi Alliance — and JSC International Investment Fund SPC, among others.

German automotive supplier Robert Bosch GmbH has indicated an interest in purchasing WeRide shares worth up to $100 million sold in the IPO.

WeRide would be the second major China-based company to seek U.S. listing this year. In May, electric-vehicle maker Zeekr debuted on the New York Stock Exchange and is trading 35.6% below its offer price.

Chinese IPOs in the U.S. had dried up in the past couple of years after ride-hailing giant Didi Global was forced to delist in 2022 following backlash from Chinese regulators.

WeRide would list on the Nasdaq under the symbol “WRD”.

Morgan Stanley, J.P. Morgan and China International Capital Corporation are lead underwriters for the IPO.