Pony AI Targets $4.5 Billion Valuation in US IPO, Highlighting Growth in Autonomous Vehicle Sector

Pony AI Nears US IPO as Self-Driving Rivalry With China Heats Up

Autonomous driving startup Pony AI Inc.'s upcoming US initial public offering will be closely watched, as Donald Trump's second administration considers moves that could ramp up competition in the sector with China. The Guangzhou-headquartered company, which makes self-driving software and operates a fleet of 250 robotaxis in cities including Beijing and Shanghai, is part of a growing cohort of companies in China and the US pushing the boundaries around the emerging technology. Pony is seeking a market value of as much as $4.5 billion, based on the shares listed in its regulatory filings.

Chinese autonomous driving startup Pony AI seeks up to $224M in US IPO

Pony AI is inching closer to its initial public offering in the U.S., but as it does so, it continues to drop its minimum target for what it hopes to raise in the transaction. Pony operates a fleet of 190 "robotrucks" in Beijing and Guangzhou and over 250 robotaxis in Beijing, Guangzhou, Shenzhen, and Shanghai. The company told TechCrunch it can charge for robotaxi fares in all four cities and is fully driverless in Beijing, Guangzhou, and Shenzhen. In a filing Thursday, the Chinese self-driving technology company said it plans to issue 15 million American Depository Shares, with the possibility of issuing 2.25 million more if demand is high, at an expected price range of between $11 and $13 per share. At $13, that would value the company at $4.48 billion, based on 344.9 million shares outstanding immediately following the offering. Pony once hit a valuation of $8.5 billion following the close of a Series D round in 2022, in which Toyota participated. Based on the company's expected share price range, Pony could expect to rake in up to $224 million from the transaction, which is well below its initial target of $425 million. But at minimum, the company would collect $165 million, which is also well below the $200 million minimum set in September. Pony's debut is the latest in a string of Chinese companies going public on the U.S. stock market after a multi-year ban from Beijing on offshore capital raising. U.S. investors appear to have a growing appetite for Chinese technology companies, despite growing geopolitical tensions and a looming tariff on all Chinese imports. In the automotive sector, Pony follows Chinese EV startup Zeekr, which debuted on the New York Stock Exchange in May with $441 million in gross proceeds. WeRide, another autonomous vehicle startup, debuted on the Nasdaq in October, raising $440.5 million in its IPO and private placement. Pony will list on the Nasdaq under the ticker "PONY."

Chinese robotaxi firm Pony AI seeks up to $4.5 billion valuation in US IPO

(Reuters) - Chinese autonomous driving firm Pony AI said on Thursday it was targeting a valuation of up to $4.48 billion in its initial public offering in the United States. Pony, backed by Japanese automaker Toyota, is seeking up to $195 million in the IPO by offering 15 million American Depositary Shares priced between $11 and $13 each. Self-driving firms are competing to raise capital as they look to scale operations. Guangzhou-based Pony will enter the market on the heels of rival WeRide's Nasdaq debut in October. Pony AI will list on the Nasdaq under the ticker symbol "PONY". Goldman Sachs, BofA Securities, Deutsche Bank, Huatai Securities and Tiger Brokers are underwriting the IPO. (Reporting by Arasu Kannagi Basil in Bengaluru; editing by Alan Barona)

Pony AI Gears Up For $4.48B Valuation In US IPO Amid Autonomous Vehicle Boom - WeRide (NASDAQ:WRD)

Pony.ai reported an 85.5% revenue increase, driven by expanding robotaxi and robotruck services across key markets. Pony AI Inc., a leading Chinese autonomous vehicle technology company founded in 2016, gears up for its initial public offering (IPO), offering 15 million American depositary shares (ADSs) expected to be priced between $11 and $13 per share. The company filed for its initial offering in the U.S. in October. The company's targeted price range implies a valuation of up to $4.48 billion at the top end, per a regulatory filing. The calculations are based on the 344.95 million ordinary shares issued and outstanding immediately after the completion of this offering. The company is known for its cutting-edge robotaxi and robotruck services. It has established strong industry partnerships and holds unique driverless service licenses across major Chinese cities, positioning it as a significant player in the autonomous vehicle sector. Pony.ai plans to list its ADSs on the Nasdaq under the symbol "PONY." At an assumed $12 per ADS mid-point of the estimated offering price, the company expects net proceeds of $159.8 million from the IPO (or $184.9 million with full over-allotments) and $153.4 million from private placements. Proceeds will support market expansion, R&D, and potential strategic investments. Also Read: Alphabet's Waymo Opens Robotaxi Rides For All In Los Angeles After San Francisco, Says 'More Cities On The Way' Pony AI's total revenues rose 85.5%, reaching $39.5 million for the nine months ending September 30, 2024. Revenues from robotaxi services jumped from $0.9 million to $4.7 million, driven by AV engineering projects in South Korea and expanded fare-charging operations in China. Robotruck services revenues for the nine months grew 56.5%, hitting $27.4 million, thanks to increased transportation fees from fleet expansion and higher mileage by Cyantron, which added 45 robotrucks and covered over 17 million kilometers. Chinese autonomous vehicle startup WeRide Inc., WRD, a key competitor to Pony AI, completed its IPO of 7.74 million ADSs at $15.50 per share, potentially raising $458.5 million with full over-allotments. Each ADS represents three Class A shares. WeRide's ADSs began trading on Nasdaq under the symbol "WRD" on October 25, 2024. Image: Shutterstock/ Andrii Yalanskyi Read Next: GM's Autonomous Driving Unit Cruise Admits To Falsifying Accident Report To NHTSA, Agrees To Pay $500K Fine Market News and Data brought to you by Benzinga APIs

Saudi-backed Pony AI seeks $4.5bn valuation in US IPO

Credit: Getty Images Pony AI is seeking a valuation of up to $4.48bn in its US initial public offering, it said on Thursday, as the Chinese self-driving firm moves ahead with its long-sought plan for a New York listing. Pony, founded in 2016 and backed by Japanese automaker Toyota, aims to raise up to $195 million by offering 15 million American Depositary Shares priced between $11 and $13 each. Self-driving firms are looking to raise capital as they seek to scale operations. Guangzhou-based Pony, whose fleet includes over 250 robotaxis and 190 robotrucks, will enter the US stock market on the heels of rival WeRide's Nasdaq debut in October. Two investors, including Chinese carmaker BAIC, have indicated on buying shares worth $74.9m in the IPO. Pony, which last year secured $100 million from Saudi Arabia's NEOM, is also backed by Canadian pension fund Ontario Teachers' and venture capital firm HongShan, formerly Sequoia China. Certain investors have also agreed to buy about $153.4m worth of shares through concurrent private placements. Pony's proposed target is a climb-down from its $8.5bn valuation in a 2022 funding round. In September, its board slashed the minimum IPO valuation to $4bn from $8.5bn and proceeds to $200m from $425m. "The same bull or bear thesis investors have about WeRide also applies to Pony AI," said Matt Kennedy, senior strategist at Renaissance Capital, a provider of pre-IPO research and IPO-focused ETFs. "A currently small and unprofitable company that is growing fast in what is expected to be an enormous market." Chinese companies are slowly pursuing New York flotation following a long hiatus after ride-hailing giant Didi Global was forced to delist its U.S. shares due to a clash with Beijing. The IPO comes after a 2021 attempt to go public through a $12bn blank-check deal fell through as Beijing cracked down against Chinese technology companies. Beijing has since softened its stance and published rules last year to revive offshore listings. Zeekr's $441m May IPO is the biggest US listing by a China-based company in 2024, LSEG data showed. Rocky road While some tout robotaxis as the future of mobility, analysts believe the industry faces a rocky road ahead. Safety concerns and regulatory roadblocks have slowed the technology's commercialization. Profitability is another hurdle as robotaxis require significant investments in research and development. Still, China has swiftly approved trials compared to the U.S. as authorities support economic goals. Meanwhile, the White House is expected to ban vehicles with China-developed systems on American roads due to national security concerns. Pony will list on the Nasdaq under the symbol "PONY". Goldman Sachs, BofA Securities, Deutsche Bank, Huatai Securities and Tiger Brokers are underwriting the IPO.