Around 13 firms have guided the IPOs of two Guangzhou-headquartered driverless technology companies, Pony.ai and WeRide, on the HKEX main board, raising HKD6.7 billion (USD856.6 million) and HKD2.39 billion, respectively. The listings mark milestones for both the companies and the autonomous driving technology sector.
Pony.ai is the largest IPO in the autonomous driving sector this year to date in Hong Kong, while WeRide is the largest listing so far under chapter 18C of the HKEX’s Main Board Listing Rules, by both market value and issuance size. WeRide is also the first listing under Chapter 18C to adopt a weighted voting rights structure.
The Hong Kong debuts of both Pony.ai and WeRide follow their Nasdaq listing in November and October 2024, respectively. Their IPOs mark the second and third Chinese issuers to achieve dual primary listings in both Hong Kong and the US this year, after Hesai Technology’s debut on 16 September in Hong Kong.
Pony.ai issued 48 million shares at HKD139 per share. Its public offering was oversubscribed 15.88 times and internationally was oversubscribed 7.72 times. By the end of the first trading day, the company was valued at HKD54.67 billion.
Seven law firms – Davis Polk, Sheppard Mullin, Hogan Lovells, Haiwen & Partners, Walkers, Cleary Gottlieb and Jingtian & Gongcheng – assisted parties in Pony.ai’s listing.
WeRide issued 88.25 million shares at HKD27.10 each. Its shares received more interest compared to its peer, with its public offering and international offering oversubscribed 74 times and 10 times, respectively. Its market value stood at HKD25.05 billion at the close of the first trading day.
Six law firms – Cooley, Commerce & Finance Law Offices, Travers Thorp Alberga, Akin Gump, Latham & Watkins and Han Kun Law Offices – assisted parties involved in WeRide’s IPO.
Davis Polk advised Pony.ai on Hong Kong and US law, with partner He Li and Jason Xu leading the team. Shepard Mullin counselled on US and EU laws on export control, sanctions and import compliance matters. Hogan Lovells acted on US law on outbound investments.
Partners Jackson Tang and Ma Chenling led the Haiwen & Partners team, counselling Pony.ai on PRC law, with partner Yang Jianyuan assisting on data compliance matters. Walkers advised on Cayman Islands law.
Cleary Gottlieb advised joint sponsors Goldman Sachs, BofA Securities, Deutsche Securities, Huatai International and other underwriters on Hong Kong and US law. Jingtian & Gongcheng advised on PRC law, led by partners Gao Xiang and Zhu Wangying.
For WeRide’s listing, Cooley acted on Hong Kong and US laws, with partners Xu Yilin, Will Cai and Michael Yu, leading the team. Commerce & Finance counselled on PRC law and data compliance, with partner Vincent Shen as transaction team leader.Travers Thorp Alberga provided Cayman Islands legal advice, while Akin Gump acted on US outbound investment regulations.
Joint sponsors CICC and Morgan Stanley sought advice from Latham & Watkins with partners Benjamin Su and Terris Tang leading the team, advising on Hong Kong and US laws. Partners Gail Neely counselled on financial regulatory matters, James Barker and Paul Dudek on US regulatory issues and Eric Cho on tax matters. Han Kun Law Offices acted on PRC law.
Founded in 2016, Pony.ai offers robotaxi services and robotruck services. It is the only company licensed to provide robotaxi services in all four first-tier cities in China.
Its prospectus said IPO proceeds would be used for research, production and marketing of level four autonomous driving technology in the next five years. It would also be used to accelerate the large-scale commercialisation of autonomous driving.
Founded in 2017, WeRide focuses on developing and operating vehicles such as Robotaxi, Robobus and Robovan. It is the only tech company whose products have obtained autonomous driving permits in seven countries including China, Singapore and the US, and its level four fleet has grown to more than 1,500 vehicles.
IPO proceeds will be used to advance autonomous driving technology, mass production and commercial operation of the level four fleet, and establish marketing teams and branch offices.
Automotive supplier Joyson Electronic and biotech firm Vigonvita Life Sciences also debuted alongside Pony.ai and WeRide on the HKEX on 6 November.
