TuSimple raised $ 1.08 billion in an IPO after autonomous trucking rival Tesla and Google valued shares above range before the group went public on the Nasdaq on Thursday. Year.
Nearly 34 million shares were sold for $ 40 per share, giving the San Diego, California-based company a market value of $ 8.49 billion, based on volume details. Shares are circulating in record. The company sold 27.03 million shares, while one shareholder sold 6.76 million shares, TuSimple said.
TuSimple’s hotly anticipated public offering has hampered the recent trend by delisting its shares through a merger with a special-purpose acquisition. The conglomerate says its self-driving trucking technology makes it well-positioned to disrupt the $ 4 trillion global freight market.
It has 5,700 pre-orders for the self-driving truck built by Navistar
Using the artificial intelligence platform, expected to go into production by 2024, with 70 trucks already on the road in the US and China.
But it will face stiff competition on the way to dominate road transport with AI, including from electric car maker Tesla.
Pickup trucks as well as China-based manufacturer XPeng projects
and Waymo, the self-driving arm of Google’s parent Alphabet
A total of 33.8 million TuSimple shares will begin trading on the Nasdaq Global Select Market today under the symbol “TSP”, with 27 million shares offered by TuSimple and 6.8 million from Chinese supporter Sun. Dream, the sole largest shareholder of the corporation.
The offering is being led by underwriters Morgan Stanley
and will create assets for the two co-founders, Mo Chen and Xiaodi Hou. Chen and Hou each own about 12% of the company’s outstanding shares, worth more than $ 1 billion.
Based on a share price of $ 37, the company said in a filing to the US Securities and Exchange Commission that it expects to raise $ 985.7 million from the IPO. them and $ 35 million in issue separately, including underwriting and other costs. The $ 40 share price brings the total raised to $ 1.08 billion, the company said Thursday.
and Navistar, which also owns more than 6% of the Grade A shares. The Company also includes a joint venture of the logistics group UPS
among backers, said they would use IPO proceeds for working capital, including funding for operating needs, and partially used to buy or invest in products. additional technology or business.
TuSimple’s revenue remains relatively minimal while its losses increase during rapid growth. The Group reported a net loss of $ 198.8 million on revenue of $ 1.8 million in 2020, building on a $ 145 million loss on $ 710,000 in 2019.
TuSimple lists stiff competition from competitors in an industry still in its early stages as key risk factors in its profile. The company also highlighted the legal risks associated with Sun Dream, its major backer, tied to Chinese tech giant Sina, which owns social network Weibo.
Sun Dream, set to own 13% of the circulating equity after the IPO, is eventually controlled by Charles Chao, chairman of Sina and one of TuSimple’s directors. Sun Dream’s involvement with TuSimple sparked an investigation by the US Foreign Investment Commission in March.