BRIEF: WeRide launches Hong Kong IPO to raise $400 million

Robotaxi operator WeRide Inc.  (0800.HK, WRD.US) launched its Hong Kong IPO Tuesday, aiming to sell 88.25 million shares, with just 5% allotted for local investors in Hong Kong. The shares will be priced at a maximum of HK$35 each, with the potential to raise up to HK$3.09 billion ($397 million). Shares are being sold in lots of 100, carrying an entry price of HK$3,535.30. Subscriptions will close next Monday, and shares will commence trading in Hong Kong next Thursday.

WeRide has posted steady losses over the past three years. It reported revenue of nearly 200 million yuan in the first half of this year, up 32.8% year-on-year. Its net loss for the period narrowed by 10% over that period to 790 million yuan. Management attributed the losses mainly to R&D costs, as well as administrative and sales expenses.

The company plans to use about 40% of the IPO proceeds to fund its autonomous-driving technology R&D. Another 40% will go to mass production and operation of its Level 4 (L4) autonomous fleet, while around 10% will be used to build its salesforce and branch infrastructure. The remaining 10% will be used for general working capital.

By Lau Chi Hang

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