China's self-driving startup WeRide shares surge 19% in Nasdaq debut

WeRide, China-based self-driving company, saw its shares rise by 19 percent on their Nasdaq debut Friday, following an initial public offering (IPO) and private placement that garnered $440.5 million in total.

The listing comes amid improving U.S. investor sentiment towards Chinese companies, spurred by a resolution to a longstanding audit dispute between China and the U.S. in December 2022.

According to David Manno, partner at securities law firm Sichenzia Ross Ference Carmel, this change signals that "companies in hot sectors are going to get attention wherever they're from," adding that "there's so much enhanced disclosure that I don't think it's going to be an issue for Chinese companies going public (in the U.S.)."

WeRide's IPO also reflects broader optimism within the U.S. IPO market, which has shown renewed momentum after a two-year hiatus. Matt Kennedy, senior strategist at IPO research firm Renaissance Capital, noted that "the bottleneck in 2022-2023 has built up the pipeline." 

"I don't see this deal as having a big impact on the broader tech sector, but it is definitely a meaningful data point for other autonomous vehicle startups and China-based companies," Kennedy said.

In the IPO, WeRide issued 7.74 million American depositary shares at $15.50 each. The company's valuation now exceeds $4 billion, with an additional $320.5 million secured in a private placement.

WeRide, recognized for its autonomous taxis, vans, buses and street sweepers, is conducting trials and commercial operations across 30 cities in seven countries. In August of this year, the company received authorization to conduct passenger trials with its autonomous vehicles in California.

(With input from Reuters)