Pony AI aims for $4.5 billion valuation in US IPO

Pony AI, a Chinese self-driving technology firm backed by Toyota, is pursuing a US listing on Nasdaq with a target valuation of up to $4.48 billion. The company plans to offer 15 million American Depositary Shares priced between $11 and $13, aiming to raise as much as $195 million. Additional private placements are expected to generate $153.4 million, with key investors like BAIC committing to $74.9 million.

Founded in 2016, Pony AI operates a fleet of over 250 robotaxis and 190 robot trucks, competing in a market poised for rapid growth but facing significant challenges. The IPO represents a major step after its valuation dropped from $8.5 billion in 2022 due to reduced investor expectations and changing market dynamics. However, this follows an earlier failed attempt at a public offering in 2021 during Beijing’s crackdown on technology companies.

The move reflects a cautious reopening of US markets for Chinese companies, which have been wary since Didi Global’s delisting. Analysts highlight the immense potential of autonomous driving while noting hurdles such as safety concerns, profitability issues, and regulatory challenges. Despite slower adoption in the US, Chinese regulators have embraced trials, offering Pony AI an edge in development.

National security concerns are casting a shadow, with potential bans on vehicles using China-developed systems in the US. Pony AI’s IPO is supported by key financial backers, including Saudi Arabia’s NEOM, Ontario Teachers’ Pension Plan, and HongShan. The shares will trade under the ticker symbol ‘PONY,’ with Goldman Sachs, BofA Securities, and others managing the offering.