(Yicai) Oct. 28 -- WeRide’s shares rose on their trading debut in New York as the Chinese startup became the world's first universal developer of self-driving technologies and the first robotaxi operator to go public.

After soaring by more than 27 percent at one point, WeRide [NASDAQ: WRD] closed 6.8 percent higher at USD16.55 a share on Oct. 25, giving it a market capitalization of USD4.5 billion. In pre-market trading today, the shares were up 4.5 percent at USD17.30 as of 4.29 a.m. local time.

Guangzhou-based WeRide sold 8.9 million American depositary shares at USD15.50 apiece. If underwriters fully exercise their option, the proceeds from the listing and concurrent private placement could reach USD458.5 million.

“For us, going public is a new beginning,” founder and Chief Executive Tony Han said. “WeRide will continue to drive technological innovation, delivering safe, comfortable, and convenient autonomous driving products and services to more countries and regions.”

Established in 2017, WeRide specializes in hardware and software solutions for autonomous driving vehicles and also makes driverless vehicles, including taxis, buses, vans, and street sweepers. It has testing and commercial operations in over 30 cities in seven countries and has self-driving permits in China, the United States, the United Arab Emirates, and Singapore, with more than 1,700 days of related experience.

Strategic investors in WeRide, which was valued at around USD5.1 billion in November 2022, include GAC Asset Capital, Bosch, Yutong, Golden Dragon, and Nvidia. The company has integrated its advanced driver-assistance system into models of Chinese new energy vehicle maker Chery Automobile through its partnership with Bosch.

Though WeRide has secured self-driving licenses in four countries, Chinese firms in this sector may encounter significant market barriers in the US, a tech industry insider recently told Yicai.

The appeal of Chinese firms mainly stems from robust government support for smart driving initiatives, with various cities setting up pilot zones for Level-3 autonomous driving, according to a researcher in the field. “This unique advantage attracts investment, but if there are no significant breakthroughs in hardware and software in the short-term, we could see the enthusiasm dip,” the person said.

Commercialization is the biggest challenge facing self-driving vehicles, a tech industry insider noted. “Commercial competition in this sector is more ruthless than in the tech one. After WeRide goes public, the capital markets will scrutinize its financial metrics, including average revenue per user and usage rates in specific scenarios.”

WeRide's net loss widened 22 percent to CNY881.7 million (USD121.4 million) in the six months ended June 30 from a year ago, while revenue dropped 18 percent to CNY150.3 million.

Other Chinese self-driving tech startups, including Pony.ai and Momenta, are also preparing to go public in the US. Earlier this year, California-based autonomous trucking company TuSimple hit a downturn and was forced to delist due to losses.

Editor: Martin Kadiev