IPO frenzy and auto frenzy are colliding this week as details behind the TuSimple IPO come to light. TuSimple, a fairly young company, specializes in autonomous vehicle manufacturing. Namely, it deals in the production of autonomous long-haul freight trucks.
The concept of autonomous semi-trucks has been a hotly discussed one, and many vehicle manufacturers are getting into self-driving vehicles in one way or another. The new IPO will allow investors to get their hands on a unique company with a high ceiling. The company booked over $2 million in sales in 2020, and looks to build on that number throughout 2021. Most notably, the company announced last July that it is collaborating with UPS (NYSE:UPS) on a nationwide network of autonomous shipping vehicles, with the intent of implementing the plan by 2024.
So what are the details behind the TuSimple IPO? Well, the company plans to hit the Nasdaq under the ticker symbol TSP, and it expects to price next week.
The company hopes to raise $1.2 billion through the sale of nearly 34 million shares. The shares will sell for somewhere between $35 and $39. At the midpoint of the IPO price range, the market capitalization of TuSimple would come in near $8.5 billion.
The company is apparently seeing a couple rifts in its plan, mostly due to regulatory red tape. The U.S. Committee on Foreign Investments reached out to TuSimple requesting information regarding a large stakeholder in the company. While based in the United States, TuSimple does have Chinese ties and therefore many Chinese investors. Before the TuSimple IPO, the company will have to address any regulatory concerns with various government departments.
However, investors need not panic at this point. If all goes well, the company will simply respond to the queries and should be able to move forward with the TuSimple IPO as planned.
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On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article.