Self-driving company WeRide on track for US IPO

Chinese autonomous driving company WeRide is looking for its shares to take a ride on the Nasdaq.

WeRide, based in Guangzhou in South China's Guangdong province, plans to offer 6.45 million American depositary shares, or ADS, at a price range of $15.50 to $18.50 in its upcoming initial public offering, according to a filing by the company late on Friday with the US Securities and Exchange Commission, or SEC.

The main underwriters of the offering are Morgan Stanley, JPMorgan and China International Capital Corporation, a multinational investment management and financial services company based in Beijing.

WeRide was founded in 2017 by Tony Han, who is also chairman and CEO. The company plans to trade under the symbol WRD on Nasdaq.

The company reported its last year revenue of 401.8 million yuan ($55.3 million). For the first six months of this year, it had a revenue of 150.3 million yuan, according to the filing.

It will be the largest IPO by a Chinese company on the US stock market since Zeekr, a luxury EV startup owned by Geely, began selling shares on the New York Stock Exchange in May, TechCrunch reported.

WeRide also may have to contend with a US Commerce Department proposal that could bar Chinese software in autonomous and connected vehicles, Reuters reported last Monday, citing sources briefed on the matter.

President Joe Biden's administration plans to issue a rule that would bar Chinese software in vehicles in the United States with Level 3 automation and above, which would in effect ban testing of autonomous vehicles produced by Chinese companies on US roads.

WeRide generates most of its revenue from sales of its Level 4 autonomous driving vehicles "primarily including robobuses, robotaxis and robosweepers, and related sensor suites; and … the provision of L4 autonomous driving and advanced driver-assistance system (ADAS) services, including the provision of L4 operational and technical support services as well as ADAS research and development services", the SEC filing said.

The White House also will propose barring vehicles with Chinese-developed advanced wireless communications abilities modules from US roads, sources told Reuters.

Under the proposal, automakers and suppliers would need to verify that none of their connected vehicles or advanced autonomous vehicle software was developed in a "foreign entity of concern".

A Commerce Department spokesperson said on Aug 4 that the department "is concerned about the national security risks associated with" such vehicles.

In response, a spokesperson for the Chinese embassy in Washington said electric vehicles are a globalized industry.

"Only division of labor and cooperation can bring mutual benefits, and only fair competition can bring technological progress," the spokesperson said. "China urges the US to earnestly abide by market principles and international trade rules, and create a level playing field for companies from all countries. China will firmly defend its lawful rights and interests."