WeRide Inc.(US:WRD) Xin Lang Zheng Quan·2025-10-21 10:48Core Viewpoint - The Chinese autonomous driving sector is witnessing a significant shift as two leading companies, Pony AI Inc. and We Ride Inc., prepare for their listings in Hong Kong, following the successful IPO of Hesai Technology. This move reflects a competitive landscape in the capital markets, with contrasting post-IPO performances highlighting market sentiment and valuation disparities between the two firms [1][3]. Summary by Sections IPO Details - Pony AI plans to issue up to 102,146,500 shares, while We Ride aims to issue 102,428,200 shares [1]. - The IPO scale for Pony AI is estimated at $2.8 billion, and for We Ride, it is $1.3 billion [2]. - Both companies have attracted strategic investments from major players, including GAC Group and Guangzhou Nansha Government Fund [3]. Post-IPO Performance - Pony AI's stock price has shown a strong rebound, rising 51% from its IPO price to $19.63 per ADR, with a market capitalization of $69.7 billion [4]. - In contrast, We Ride's stock has declined by 33.1% to $10.37 per ADR, resulting in a market cap of $32.4 billion, widening the valuation gap to $37.3 billion [6]. Institutional Investment Trends - Institutional interest has sharply diverged, with Pony AI receiving significant backing from top global funds, totaling $3.9 billion in increased holdings [8]. - We Ride's institutional support is notably lower, with only $1 billion in increased holdings, and the quality of its investors is less favorable [9]. Regulatory and Market Considerations - The China Securities Regulatory Commission's approval of share issuance suggests a favorable regulatory stance towards Pony AI, which has a higher issuance ratio and potential fundraising compared to We Ride [11]. - Both companies will face challenges in market liquidity due to their dual-class share structures, which may limit access to southbound capital for at least seven months post-listing [12].