China’s WeRide Halts $5 Billion U.S. IPO Plans, Citing Document Delays

WeRide, a Chinese self-driving technology company, has postponed its initial public offering (IPO) in the United States, stating the need for additional time to finalize the required documents. The company had originally planned to list on the Nasdaq this week, seeking a valuation of $5 billion and aiming to raise approximately $93 million.

WeRide has stated that the process of updating transaction documents is taking longer than anticipated, which has led to the delay of its U.S. IPO. The company was initially set to offer 6.5 million American depositary shares (ADS) at $15.50 to $18.50 to raise up to $440 million through the listing. 

The delay comes at a crucial time. Beijing’s approval for the IPO is set to expire this week, raising concerns about whether WeRide will need to reapply for regulatory approval.

WeRide, which specializes in developing autonomous technology for various vehicles, including robotaxis, minibuses, and freight sanitation vehicles, was last valued at approximately $5.11 billion. 

According to data from Pitchbook, the company has raised $1.39 billion to date. The IPO was expected to coincide with a private placement, but both have been delayed. 

The timing of WeRide’s IPO is crucial, as it follows a period where Beijing appears to have relaxed restrictions on Chinese companies pursuing foreign IPOs. With foreign direct investment into Chinese startups declining since 2022, companies like WeRide increasingly seek funding from international markets. However, the looming expiration of Beijing’s approval could force WeRide to seek an extension or potentially reapply for permission to proceed with its U.S. listing.

This latest postponement follows an earlier delay intended to accommodate a new investor. The uncertainty surrounding the regulatory approval from the China Securities Regulatory Commission (CSRC) makes WeRide the first company to face the possibility of its CSRC approval lapsing during the book building phase. It remains unclear whether WeRide will need to restart the approval process or if an extension might be granted.

Founded in Silicon Valley in 2017 and incorporated in the Cayman Islands, WeRide launched its robotaxi service in Guangzhou, China, in 2019. The company filed for an IPO on the Nasdaq in July amid a dry spell for Chinese companies listing in the U.S. 

WeRide’s IPO delay occurs as the U.S. intensifies its stance against China, particularly concerning autonomous and internet-connected vehicles. The company, which develops autonomous driving technology, is currently testing or deploying its solutions in 30 cities across seven countries. According to its filing with the U.S. Securities and Exchange Commission, WeRide’s robotaxi fleet operates vehicles bought from Nissan Motor Co.

The IPO would be a rare listing by a Chinese company as the last one triggered Beijing’s regulatory crackdown on companies listing shares abroad. This scrutiny particularly affects firms dealing with sensitive data, adding an extra layer of complexity to WeRide’s planned public offering.

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