WeRide Inc. Announces Pricing of Initial Public Offering

Rhea-AI Summary

WeRide has announced the pricing of its initial public offering of 7,742,400 American depositary shares (ADSs) at US$15.50 per ADS, with each ADS representing three Class A ordinary shares. The ADSs will trade on the Nasdaq Global Select Market under the symbol 'WRD' starting October 25, 2024. The company has granted underwriters a 30-day option to purchase up to 1,161,360 additional ADSs. Concurrent with the IPO, certain investors will purchase US$320.5 million in Class A ordinary shares through private placements. The total potential gross proceeds could reach US$458.5 million if underwriters fully exercise their option.

Positive

• Potential to raise US$458.5 million in combined IPO and private placements
• Secured US$320.5 million in concurrent private placements
• Listed on Nasdaq Global Select Market, providing enhanced visibility and liquidity

Negative

• Potential dilution of existing shareholders through new share issuance
• Additional dilution possible if underwriters exercise their option for 1,161,360 ADSs

Insights

Financial Analyst

This IPO represents a significant milestone for WeRide, raising up to $458.5 million through a combination of public offering and private placements. The pricing at $15.50 per ADS suggests strong institutional interest, with notable concurrent private placements of $320.5 million indicating substantial confidence from strategic investors. The company's decision to list on Nasdaq's Global Select Market, which has the highest initial listing standards of any exchange, reflects its strong fundamentals. The involvement of top-tier underwriters like Morgan Stanley and J.P. Morgan adds credibility to the offering. The concurrent private placements structure helps reduce market pressure while securing significant capital, a smart approach in the current volatile market environment for tech IPOs.

Tech Expert

WeRide's IPO marks a important development in the autonomous driving sector, representing one of the first pure-play autonomous driving companies to go public. The substantial capital raise will likely accelerate their technology development and market expansion. The autonomous driving industry requires significant ongoing investment in R&D, fleet operations and regulatory compliance. This funding provides WeRide with the resources to compete effectively against both established automakers and other autonomous driving startups. The private placement component suggests strong strategic partnerships, which are important for commercialization in this technology-intensive sector.

NEW YORK, Oct. 25, 2024 (GLOBE NEWSWIRE) -- WeRide Inc. (“WeRide” or the “Company”) (Nasdaq: WRD), a global leader and a first mover in the autonomous driving industry, today announced the pricing of its initial public offering of 7,742,400 American depositary shares (“ADSs”), each representing three Class A ordinary shares of the Company, at a price to the public of US$15.50 per ADS. The ADSs have been approved for listing and are expected to begin trading on the Nasdaq Global Select Market on October 25, 2024, under the ticker symbol “WRD.” The offering is expected to close on October 28, 2024, subject to customary closing conditions.

In addition, the Company has granted the underwriters an option, exercisable within 30 days from the date of the final prospectus, to purchase up to an aggregate of 1,161,360 additional ADSs.

Concurrently with, and subject to, the completion of this offering, certain investors have agreed to purchase US$320.5 million in Class A ordinary shares from the Company through private placements pursuant to an exemption from registration with the United States Securities and Exchange Commission (the “SEC”) under Regulation S of the Securities Act of 1933, as amended. The Company may raise total gross proceeds of approximately US$458.5 million in the initial public offering and the concurrent private placements, assuming the underwriters of the initial public offering fully exercise their option to purchase additional ADSs.

Morgan Stanley Asia Limited, J.P. Morgan Securities LLC, China International Capital Corporation Hong Kong Securities Limited, ABCI Securities Company Limited, BNP Paribas Securities (Asia) Limited and Tiger Brokers (NZ) Limited are acting as underwriters for the offering.

A registration statement related to these securities (other than those in the concurrent private placements) has been filed with, and declared effective by the SEC. This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

This offering is being made only by means of a prospectus forming part of the effective registration statement. A copy of the final prospectus relating to the offering may be obtained, when available, by contacting Morgan Stanley Asia Limited , c/o Morgan Stanley & Co. LLC, 180 Varick Street, 2nd Floor, New York, NY 10014, United States of America, or by calling +1-866-718-1649, or by email at prospectus@morganstanley.com; J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or by email at prospectus-eq_fi@jpmchase.com and postsalemanualrequests@broadridge.com; and China International Capital Corporation Hong Kong Securities Limited at 29/F, One International Finance Centre, 1 Harbour View Street, Central, Hong Kong or by telephone at +852-2872-2000 or by e-mailing g_prospectus@cicc.com.cn.

About WeRide

WeRide is a global leader and a first mover in the autonomous driving industry. Empowered by the smart, versatile, cost-effective and highly adaptable WeRide One platform, WeRide provides autonomous driving products and services from L2 to L4, addressing the vast majority of transportation needs across the widest range of use cases on the open road, including in the mobility, logistics, and sanitation industries. In September 2023, WeRide earned a prestigious position among the top ten on Fortune Magazine’s “2023 Change the World” list.

Safe Harbor Statement

This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to,” and similar statements. Statements that are not historical facts, including statements about WeRide’s beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in WeRide’s filings with the SEC. All information provided in this press release is as of the date of this press release, and WeRide does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Contact

Robin Yang

ICR, LLC

WeRide.IR@icrinc.com

+1 (646) 224-6934

FAQ

What is the IPO price for WeRide (WRD) shares?

WeRide (WRD) priced its IPO at US$15.50 per ADS, with each ADS representing three Class A ordinary shares.

When will WeRide (WRD) begin trading on Nasdaq?

WeRide (WRD) is expected to begin trading on the Nasdaq Global Select Market on October 25, 2024.

How much money is WeRide (WRD) raising in its IPO and private placements?

WeRide could raise total gross proceeds of approximately US$458.5 million, combining the IPO and concurrent private placements of US$320.5 million, if underwriters fully exercise their option.

How many ADSs is WeRide (WRD) offering in its IPO?

WeRide is offering 7,742,400 ADSs, with an additional option for underwriters to purchase up to 1,161,360 more ADSs within 30 days.