NEW YORK: WeRide Inc, a Chinese self-driving automotive company, is seeking to raise as much as US$440mil in a US initial public offering (IPO) and concurrent private placement.

The Guangzhou-based autonomous vehicle company, which was granted approval last year by the Chinese securities regulator for a US listing, is offering 6.45 million American depositary shares (ADS) at US$15.50 to US$18.50 each, according to a US Securities and Exchange Commission filing confirming an earlier Bloomberg News report. With each ADS representing three ordinary shares, WeRide would have a market value of about US$5bil at the top of that range based on the filing.

A group of investors agreed to buy US$320.5mil worth of ordinary shares via private placements, the filing shows.

Alliance Ventures, the venture-capital fund of the Renault Nissan Mitsubishi Alliance and an existing WeRide backer, is set to purchase US$97mil worth of shares, according to the filing.

Alliance Ventures took part in WeRide funding rounds in 2018 and 2021. Other investors buying stock in the private placements include JSC International Investment Fund SPC and Get Ride Inc.

Separately, auto parts maker Robert Bosch GmbH agreed to buy as much as US$100mil worth of ADS at the IPO price, the filing shows. The number of ADS available for sale to the public will be reduced to the extent that Bosch purchases any ADS.

The IPO and placements would be a rare sizable listing by a Chinese company in the US since ride-share company Didi Global Inc’s disastrous 2021 offering.

The US$4.4bil IPO prompted a crackdown by Beijing on companies selling shares abroad, and resulted in additional scrutiny on firms with sensitive data listing overseas.

Since then, Chinese IPOs in the US have been few and far between. Overseas investors’ appetite for Chinese stocks hasn’t returned, with the S&P China Select ADR Index, which tracks American depositary receipts trading in the United States subject to size and liquidity requirements, still 66% off its February 2021 high, according to Bloomberg calculations. The index has shed about 9% in 2024.

The largest IPO this year by a Chinese company debuting in the United States is Zeekr Intelligent Technology Holding Ltd’s US$441mil first-time share sale in May. The stock is trading 36% below its IPO price.

WeRide, which began operating in 2017, develops autonomous driving technology and is testing or deploying it commercially in 30 cities in seven countries, according to the filing. Its robotaxi fleet uses vehicles purchased from Nissan Motor Co, the filing shows.

The IPO would also come as the United States is preparing to widen its confrontation with China over autonomous and Internet-connected vehicles.

Biden administration officials plan to propose limits on US sales of Chinese vehicle software as soon as this month, Bloomberg News reported last Tuesday. The move would include curbs on the use and testing of Chinese technology for autonomous vehicles, people familiar with the matter have said.

WeRide’s offering is being led by Morgan Stanley, JPMorgan Chase & Co and China International Capital Corp. WeRide plans for its ADS to trade on the Nasdaq under the symbol WRD.

 - Bloomberg