Self-Driving Vehicle Company Files for IPO

China-based self-driving technology company WeRide is planning to go public in the United States.

The start-up, which is based in the southern mega-city of Guangzhou but incorporated in the Cayman Islands, has filed an initial public offering (IPO) with the Securities and Exchange Commission.

WeRide was founded in 2017 but has gained momentum recently thanks to its array of different autonomous driving products and a bold plan to increase its presence across the globe.

There is no indication yet as to what it expects to raise from the listing, although Bloomberg reported last year that it had been targeting a sum of $500 million. It is being widely speculated that the IPO could be the biggest involving a Chinese company since ride-hailing giant Didi’s ultimately ill-fated $4.44 billion listing in 2021.

In the filing, WeRide acknowledged it could face “various legal and operational risks and uncertainties” due to its presence in China, a recognition of the current trading tensions between the country and the U.S.

“For example, we face risks associated with the fact that the PRC [People’s Republic of China] government has significant authority in regulating our operations and may influence or intervene in our operations at any time, regulatory approvals on offerings conducted overseas by, and foreign investment in, China-based issuers, anti-monopoly regulatory actions and oversight on data security,” stated the filing.

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There is also an acknowledgement it lost $268 million last year, with revenue of $55 million.

However, WeRide has made genuine progress. Its driverless Robotaxis, for example, have become a familiar sight in a number of Chinese cities, including the capital Beijing, where it gained permission to operate them commercially in December 2023.

Other products include the street-cleaning Robosweeper, which was put into service in Guangzhou in 2022, plus a Robobus and Robovan.

Even more significant than its extensive portfolio has been its expansion into markets beyond China.

It showcased its Robobus in Saudi Arabia in 2022, and a year later gained a groundbreaking permit to run its autonomous vehicles country-wide in the United Arab Emirates – the first time such a wide-ranging license had been issued anywhere in the world.

This year has seen further breakthroughs, with the launch of Singapore’s first autonomous bus, and another bus pilot at the French Open tennis in Paris – in tandem with the Renault Group – that was intended as a launch pad for a move into the European market.

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WeRide has an office in San Jose, California, where it has permission to test. It can also test in Santa Clara.

Overall, the company said it is active in 30 cities across seven countries and the only company globally that offers a commercialized range of products stretching from Level 2 (advanced assistance) to Level 4 (full autonomy in specific scenarios), as defined by the Society of Automotive Engineers.

Among the current investors who have pledged to buy shares is one of the world’s foremost auto manufacturing groups, the Renault Nissan Mitsubishi Alliance.