China-based autonomous driving startup WeRide has reportedly postponed its plans for an initial public offering in the U.S.
What Happened: The company is still preparing for its first-time share sale, Bloomberg reported, citing people familiar with the matter. The news comes days before the China Securities Regulatory Commission’s green light for the deal expires, the report said, while adding that it is not clear if the company will have to apply fresh for approval or seek an extension.
WeRide was looking to raise up to $119.4 million in the IPO by offering 6.452 million American depositary shares (ADS) priced between $15.50 and $18.50 per share, according to a filing with the Securities and Exchange Commission (SEC) earlier this month. Some of the existing WeRide investors also agreed to purchase $320.5 million worth of shares from the company on the completion of the IPO, the company said in the filing.
This comes amid growing U.S. concerns over Chinese autonomous and internet-connected vehicles – the Biden administration is considering imposing limits on the sale of Chinese vehicle software this month, according to a Bloomberg report, citing unnamed sources.
WeRide did not immediately respond to Benzinga’s request for comment.
Why It Matters: WeRide, which commenced business in 2017, specializes in autonomous driving technologies and is testing and operating products in 30 cities and seven countries across Asia, the Middle East, and Europe.
For the first half of 2024, WeRide reported revenue of 150.3 million yuan ($20.97 million) and incurred a loss of 881.7 million yuan ($123.03 million), up from a loss of 723.1 million yuan ($100.9 million) reported in the corresponding period last year.
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Photo courtesy: WeRide
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