(Bloomberg) -- WeRide Inc. has postponed its plan for a US initial public offering, according to people with knowledge of the matter, days before Chinese regulatory approval lapses.
The company is still preparing for its first-time share sale, in part to complete documentation for US securities regulators, the people said, asking not to be identified because the matter is private.
The autonomous vehicle company was seeking as much as $440 million in the IPO and concurrent private placement. WeRide earlier delayed the planned share sale to this week to make room for a new investor. The latest postponement was previously reported by IFR.
A spokesperson for WeRide said in an emailed statement that updating documents for the transaction was taking longer than expected, and that the company was working to complete the necessary documentation to move forward with the listing.
Beijing’s approval for the deal is set to expire at the end of this week, according to a statement by the China Securities Regulatory Commission. That suggests WeRide will be the first company to see its approval by CSRC lapse during bookbuilding, IFR said, adding that it’s not clear whether WeRide would need to reapply for approval or could ask for an extension.
WeRide’s IPO delay comes as the US is preparing to widen its confrontation with China over autonomous and internet-connected vehicles. WeRide, which began operating in 2017, develops autonomous driving technology and is testing or deploying it commercially in 30 cities in seven countries, according to a filing with the US Securities and Exchange Commission. Its robotaxi fleet uses vehicles purchased from Nissan Motor Co., the filing shows.
The IPO would be a rare sizable listing by a Chinese company in the US since ride-share company Didi Global Inc.’s disastrous 2021 offering. The $4.4 billion IPO prompted a crackdown by Beijing on companies selling shares abroad, and resulted in additional scrutiny on firms with sensitive data listing overseas.
--With assistance from Natalie Choy.
(Adds WeRide response in fourth paragraph.)
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