Robotaxi startup WeRide delays US IPO days before Chinese approval expires

Chinese autonomous driving startup WeRide has postponed its initial public offering (IPO) in the US, citing the need for additional time to finalize necessary paperwork.

The company wanted raise up to $440 million in the New York offering originally scheduled for this week. WeRide said in a statement Thursday that “the time it took to update documents took longer than expected” and the company is “actively working on the necessary documents for the transaction.”

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

According to Chinese rulesWeRide, a Cayman Islands holding company operating primarily through Guangzhou Wenyuan Zhixing Technology and its subsidiaries in mainland China, needs regulatory approval to conduct an overseas public offering. The approval it received from the CSRC on Aug. 25 last year is valid for 12 months.

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

In addition to the technical and paperwork issues, WeRide’s IPO is being overshadowed by rising China-U.S. geopolitical tensions, particularly in the tech sector. The U.S. Commerce Department is considering banning Chinese software in autonomous and connected vehicles, citing national security concerns, according to a Reuters report earlier this month.

WeRide was founded in 2017 by CEO Tony Han Xu, a former chief scientist in the autonomous driving division of Chinese search engine giant Baidu.

The startup has received permits to operate autonomous vehicle services in China, the United Arab Emirates, and Singapore. Earlier this month, it received California approval to test autonomous vehicles with passengers.

In addition to robotaxes, WeRide also offers autonomous buses and vans, street sweepers, and advanced driver-assistance software.

WeRide is among a group of Chinese autonomous driving “unicorns” that have received significant support but still struggle to turn a profit.

WeRide has raised $1.4 billion so far from high-profile investors including German auto parts maker Robert Bosch, Chinese carmaker GAC Group, Japanese investment arm Nissan Motor Alliance Ventures, Tokyo-based Mitsubishi Motors, French manufacturer Renault Group and U.S. chip designer Nvidia. Its financial investors include Qiming Venture Partners and IDG Capital.

WeRide posted a net loss of 1.95 billion yuan ($268 million) last year on revenue of 402 million yuan, according to its prospectus. In the first half of this year, the net loss narrowed to 882 million yuan.