(Reuters) -Self-driving truck startup TuSimple Holdings Inc said on Wednesday it was targeting a valuation of more than $8 billion in its U.S. initial public offering (IPO).
TuSimple is the third company to announce plans to raise more than a billion dollars through share sales on Wednesday, as companies continue to tap into the red-hot U.S. IPO market.
The company said it aims to raise about $1.3 billion by selling about 34 million shares between $35 and $39 apiece.
Many startups, automakers and large technology companies, including Google (NASDAQ:GOOGL)'s Waymo and China-based Xpeng Inc, are accelerating work on their self-driving technology that is expected to bring a sea change in the transportation industry.
The San Diego, California-based company, backed by Volkswagen (DE:VOWG_p)'s commercial trucking unit TRATON SE and United Parcel Service Inc (NYSE:UPS), is developing self-driving trucks with Navistar International Corp that are slated to start production in 2024.
The company said its technology will cut labour costs and reduce accidents.
TuSimple launched a self-driving freight network partnership with UPS and Berkshire Hathaway (NYSE:BRKa) Inc's supply chain unit, McLane, in July that it said should be operational nationwide by 2024.
In its filing last month, TuSimple said a 2017 investment from Sun Dream Inc, an affiliate of Chinese technology firm Sina Corp, was being probed by the Committee on Foreign Investment in the United States (CFIUS).
TuSimple will list on Nasdaq under the symbol "TSP".
Morgan Stanley (NYSE:MS), Citigroup (NYSE:C) and J.P. Morgan are among the underwriters for the offering.