NEW YORK - WeRide Inc. (NASDAQ:WRD), a company that specializes in autonomous driving technology, has announced the closure of its initial public offering (IPO) on Monday, with the sale of 7,742,400 American depositary shares (ADSs) priced at $15.50 each. This marks the company's debut on the Nasdaq Global Select Market, which began on Thursday.
The ADSs, each representing three Class A ordinary shares of the company, are expected to raise a total of approximately $458.5 million in gross proceeds, should the underwriters exercise their option to purchase an additional 1,161,360 ADSs within the next 30 days. This figure includes the funds from the IPO and concurrent private placements, before deductions for underwriting discounts, commissions, and other offering expenses.
WeRide's IPO was facilitated by a group of underwriters led by Morgan Stanley (NYSE:MS) Asia Limited, J.P. Morgan Securities LLC, and China International Capital Corporation Hong Kong Securities Limited, among others.
The company, which has been recognized as a leader in the field of autonomous driving, operates on the WeRide One platform. This platform supports autonomous driving products and services ranging from L2 to L4, catering to a wide spectrum of transportation needs across various sectors, including mobility, logistics, and sanitation.
In September 2023, WeRide was listed among the top ten on Fortune Magazine’s "Change the World" list, emphasizing its role in the autonomous driving industry.
The press release contains forward-looking statements that involve risks and uncertainties, cautioning that actual results may differ materially from those projected. The company's SEC filings detail these risks further.
The completion of WeRide's IPO and its commencement of trading on the Nasdaq is a significant milestone for the company, reflecting its growth and prominence in the autonomous vehicle sector. The information for this article is based on a press release statement from WeRide Inc.
InvestingPro Insights
As WeRide Inc. (NASDAQ:WRD) makes its debut on the Nasdaq Global Select Market, investors are keen to understand the company's financial position and growth prospects. According to InvestingPro data, WeRide's revenue for the last twelve months as of Q2 2024 stands at $50.81 million. However, the company is currently operating at a loss, with an adjusted operating income of -$237.48 million for the same period.
One InvestingPro Tip highlights that WeRide's revenue growth has been decelerating, with a -35.29% revenue growth rate over the last twelve months. This aligns with the company's recent IPO, as it seeks to raise capital to fuel future growth and development in the competitive autonomous driving technology sector.
Another crucial InvestingPro Tip notes that WeRide is currently trading below its fair value estimate of $10.5 per share. This information could be particularly relevant for investors considering the stock following its recent IPO.
It's worth noting that InvestingPro offers 12 additional tips for WeRide, providing a more comprehensive analysis for those interested in delving deeper into the company's financial health and market position.
The autonomous driving industry is capital-intensive, and WeRide's IPO proceeds of approximately $458.5 million could be crucial for its future development and market expansion. As the company navigates its post-IPO phase, investors will be closely watching its ability to leverage this capital to accelerate growth and move towards profitability in the evolving autonomous vehicle market.
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