Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Equity Capital Markets

<ul>
<li>WeRide, a Guangzhou-based autonomous driving unicorn, priced its IPO at $15.50 per ADS, a low-end of the price range, implying a market cap of ~$4.2B.</li>
<li>WeRide sold ~7.7M ADSs, of which Robert Bosch GmbH has acquired 6.5M ADSs, representing ~84% of the ADSs being offered in this IPO.</li>
<li>In addition, certain investors and existing shareholders purchased ~$321M worth of WeRide Class A shares in the concurrent private placements.</li>
</ul>


WeRide, a Guangzhou-based autonomous driving unicorn, priced its IPO at $15.50 per ADS, a low-end of the price range, implying a market cap of ~$4.2B.
WeRide sold ~7.7M ADSs, of which Robert Bosch GmbH has acquired 6.5M ADSs, representing ~84% of the ADSs being offered in this IPO.
In addition, certain investors and existing shareholders purchased ~$321M worth of WeRide Class A shares in the concurrent private placements.


WeRide Low Float US IPO: Pricing and Nasdaq Debut

APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/weride-corp" target="_blank" data-smartkarma-citation="entities:39905:1" rel="noopener">WeRide (WRD US)</a> is looking to raise US$119m in its US IPO.</li>
<li>WeRide provides autonomous driving products and services from L2 to L4 of driving automation.</li>
<li>We had looked at the firm’s past performance in our earlier notes. In this note, we discuss our thoughts on valuation.</li>
</ul>



WeRide (WRD US) is looking to raise US$119m in its US IPO.
WeRide provides autonomous driving products and services from L2 to L4 of driving automation.
We had looked at the firm’s past performance in our earlier notes. In this note, we discuss our thoughts on valuation.


WeRide IPO - Stiff Competition and Bleak Sentiment.  Premium Valuation Doesn’t Help

<ul>
<li>Changsha Intelligent Driving Institute, more commonly known as CiDi, filed for an IPO in Hong Kong. The company was valued at ~RMB9B in its last private funding round.</li>
<li>CiDi was backed by HongShan Capital, Xinding Capital, Founder Hesheng Investment, Legend Holdings, Baidu Venture, and Lens Technology, among others.  </li>
<li>The terms of the IPO were not disclosed. CiDi is a category winner that is addressing a large TAM (~$10B by 2030) with room for hyper growth for years.</li>
</ul>


Changsha Intelligent Driving Institute, more commonly known as CiDi, filed for an IPO in Hong Kong. The company was valued at ~RMB9B in its last private funding round.
CiDi was backed by HongShan Capital, Xinding Capital, Founder Hesheng Investment, Legend Holdings, Baidu Venture, and Lens Technology, among others.  
The terms of the IPO were not disclosed. CiDi is a category winner that is addressing a large TAM (~$10B by 2030) with room for hyper growth for years.


CiDi IPO Valuation Analysis: High Valuation Is Warranted Due To Unicorn Status/Hyper Growth Profile

<ul>
<li>WeRide, a pure-play autonomous driving company with operations in 7 countries, may raise up to $120M in upcoming IPO in the United States.</li>
<li>WeRide is expected to IPO this week. The company’s amended prospectus puts the price range per ADS at $15.50 to $18.50, implying a market cap of ~$4.6B at the midpoint.</li>
<li>The company has raised ~$1.4B in equity financing to date and was backed by Qiming Venture Partners and the venture capital fund of the Renault Nissan Mitsubishi Alliance, among others.</li>
</ul>


WeRide, a pure-play autonomous driving company with operations in 7 countries, may raise up to $120M in upcoming IPO in the United States.
WeRide is expected to IPO this week. The company’s amended prospectus puts the price range per ADS at $15.50 to $18.50, implying a market cap of ~$4.6B at the midpoint.
The company has raised ~$1.4B in equity financing to date and was backed by Qiming Venture Partners and the venture capital fund of the Renault Nissan Mitsubishi Alliance, among others.


WeRide IPO: High-Risk Venture Investment and Unproven Business Model

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/weride-corp" target="_blank" data-smartkarma-citation="entities:39905:1" rel="noopener">WeRide (WRD US)</a>, a provider of autonomous driving products and services, seeks to raise up to US$119 million through a Nasdaq IPO and US$321 million through a concurrent private placement.</li>
<li>In <em><strong><a href="https://www.smartkarma.com/insights/weride-wrd-us-ipo-the-bull-case" target="_blank" data-smartkarma-citation="insights:154629" rel="noopener">WeRide (WRD US) IPO: The Bull Case</a></strong></em>, we highlighted the key elements of the bull case. In this note, we outline the bear case.</li>
<li>The bear case rests on a volatile revenue profile, high customer concentration risk, widening losses that raise doubts on the path to profitability, elongated cash collection cycles and cash burn.</li>
</ul>



WeRide (WRD US), a provider of autonomous driving products and services, seeks to raise up to US$119 million through a Nasdaq IPO and US$321 million through a concurrent private placement.
In WeRide (WRD US) IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
The bear case rests on a volatile revenue profile, high customer concentration risk, widening losses that raise doubts on the path to profitability, elongated cash collection cycles and cash burn.


China

WeRide Inc. operates as a holding company. The Company, through its subsidiaries, provides autonomous driving technology solutions designs to cater to a broad spectrum of scenarios from urban environments to highways. WeRide serves customers worldwide.

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WeRide (WRD US)

WeRide Low Float US IPO: Pricing and Nasdaq Debut

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WeRide IPO - Stiff Competition and Bleak Sentiment. Premium Valuation Doesn’t Help

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Clarence Chu

CiDi IPO Valuation Analysis: High Valuation Is Warranted Due To Unicorn Status/Hyper Growth Profile

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Andrei Zakharov

WeRide IPO: High-Risk Venture Investment and Unproven Business Model

WeRide, a Chinese autonomous driving company backed by Yutong and VC investors, is expected to IPO this week in the United States. I view WeRide...

Andrei Zakharov

WeRide (WRD US) IPO: The Bear Case

The bear case rests on a volatile revenue profile, high customer concentration risk, widening losses that raise doubts on the path to...

Arun George

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