WeRide is poised to raise HK$2.39 billion in Hong Kong listing

[HONG KONG] WeRide is set to raise HK$2.39 billion (S$402 million) from its Hong Kong share sale, according to sources familiar with the matter, as it joins a slate of US-listed Chinese firms seeking a second listing in one of the world’s busiest markets.

The Guangzhou-based autonomous-driving company is telling prospective investors it plans to price its listing at HK$27.10 a share, the sources said, asking not to be identified because the information is not public. WeRide is selling about 88 million shares and had set a maximum price of HK$35 each, its prospectus shows.

The planned pricing represents a discount of almost 4 per cent to WeRide’s on Monday close on the Nasdaq of US$10.90. One American depositary share is equal to three ordinary shares.

WeRide did not immediately respond to a request seeking comment.

WeRide is due to list in Hong Kong on Nov 6, the same day as New York-listed Chinese rival Pony AI, which raised HK$6.7 billion. Both companies went public last year in the US, where delisting threats have been brewing, boosting the appeal of Hong Kong as another venue.

China International Capital and Morgan Stanley are joint sponsors of the WeRide offering, and JPMorgan Chase is also arranging the deal.

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Driverless push

WeRide and Pony AI’s parallel offerings underscore China’s ambitions, with Beijing setting a policy goal for the country to become the world’s leader in driverless vehicles by 2035.

WeRide plans to use the proceeds from the offering for purposes including developing its autonomous-driving technology, scaling up its robotaxi commercialisation and ride-hailing services and further expanding overseas.

The share sale has attracted investors including Uber Technologiesand Grab Holdings, Singapore’s Temasek Holdings and automotive supplier Robert Bosch GmbH, sources familiar with the matter have said.

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WeRide’s American depositary shares have fallen 30 per cent since their October 2024 debut in New York, giving the firm a market capitalisation of US$3.4 billion. BLOOMBERG