Robotaxi start-up WeRide delays US IPO days before Chinese approval expires

The postponement complicates WeRide’s listing plan, as Beijing’s approval for the deal is set to expire at the end of this week

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WeRide has postponed its listing on the Nasdaq Stock Exchange. Photo: Shutterstock

Published: 6:00pm, 22 Aug 2024Updated: 8:08pm, 22 Aug 2024

Chinese autonomous driving start-up WeRide has postponed its US initial public offering (IPO), citing the need for additional time to finalise necessary documents.

The company was looking to raise up to US$440 million in a New York listing originally scheduled for this week. WeRide said in a statement on Thursday that “the time required to update documents has taken longer than expected” and the company “is actively working on the necessary documents for the transaction”.

The delay, first reported by the International Financing Review, complicates WeRide’s plan to float on the Nasdaq, as Beijing’s approval for the deal is set to expire at the end of this week. It is unclear whether WeRide would have to seek an extension or reapply for a permit from the China Securities Regulatory Commission (CSRC) if it missed the deadline.

Under Chinese rules, WeRide, – Cayman Islands holding company operating primarily through Guangzhou Wenyuan Zhixing Technology and its subsidiaries in mainland China – needs a go-ahead from regulators to conduct an overseas IPO. The approval it obtained from the CSRC on August 25 last year is valid for 12 months.

WeRide last amended its prospectus and updated its filings with the US Securities and Exchange Commission on August 20.

Besides technical issues and paperwork, WeRide’s IPO is overshadowed by growing China-US geopolitical tensions, particularly in the technology sector. The US Department of Commerce is considering a ban on Chinese software in autonomous and connected vehicles, citing national security concerns, according to a Reuters report earlier this month.