Pony.ai plans to raise up to $224 million in US IPO

Chinese autonomous driving startup Pony.ai is gearing up for its initial public offering (IPO) in the United States, having recently trimmed its fundraising target, TechCrunch reports. The company is set to issue 15 million American Depository Shares (ADS) at an expected price range of $11 to $13 per share. If it reaches the upper end of this price range, the IPO could value Pony.ai at approximately $4.48 billion, based on its 344.9 million outstanding shares post-offering.

Operating a fleet of 190 robotrucks and over 250 robotaxis across major cities like Beijing, Guangzhou, Shenzhen, and Shanghai, Pony.ai is fully autonomous in three of these locations. The firm has transitioned from reliance on venture funding to generating revenue through its self-driving technology. It currently provides robotaxi services and is developing partnerships with major automakers, including Toyota, GAC, and SAIC, fortifying its market position in the autonomous vehicle sector.

Pony.ai initially aimed to raise $425 million but has revised this figure downward due to various market factors, with a new minimum target now set at $165 million. In its filing, the company revealed it has received indication of interest from new investors for about $75 million worth of ADSs, accounting for 42% of the deal. Additionally, Pony.ai is pursuing a concurrent private placement to raise an extra $153 million.

Once valued at $8.5 billion during its Series D funding round in March 2022, Pony.ai’s current focus lies in scaling up its operations amid a recovering market for Chinese companies seeking to go public in the U.S. This resurgence comes after a multi-year hiatus imposed by Beijing on offshore capital raising, reflecting a renewed interest from U.S. investors toward Chinese technology firms, despite ongoing geopolitical tensions.

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The market for autonomous vehicles is seeing significant activity, with Pony.ai closely following the likes of its peers. Chinese electric vehicle (EV) startup Zeekr successfully debuted on the New York Stock Exchange in May 2024, grossing $441 million, while WeRide, another self-driving firm, raised approximately $440.5 million from its IPO and private placement just last month.

As it positions itself for the future, Pony.ai anticipates that robotaxi services—including autonomous vehicle software deployment, maintenance, engineering, and road testing—will account for a larger portion of its revenue. This shift is essential for the company, which reported $84 million in revenue for the fiscal year ending June 30, 2024.

With plans to list under the ticker symbol “PONY” on Nasdaq, Pony.ai’s IPO is expected to price during the week of November 18, 2024. Goldman Sachs (Asia), BofA Securities, Deutsche Bank, Huatai Securities, and Tiger Brokers have been appointed as joint bookrunners for the IPO.

Featured image credit: Pony.ai