Chinese autonomous driving company Pony AI is seeking a valuation of up to $4.48bn in its upcoming US initial public offering (IPO), reported Reuters.
The company, known for its fleet of over 250 robotaxis and 190 robotrucks, is set to offer 15 million American depositary shares priced between $11 and $13 each, aiming to raise up to $195m.
Pony AI is set to list on the Nasdaq under the ticker “PONY”, with Goldman Sachs, BofA Securities, Deutsche Bank, Huatai Securities, and Tiger Brokers serving as underwriters for the IPO, the report said.
The Guangzhou-based firm has lowered its expectations, reducing its target from an $8.5bn valuation in a 2022 funding round to a minimum IPO valuation of $4bn.
This comes after its board’s decision in September to lower the anticipated proceeds to $200m from $425m.
In the IPO, two investors, including the Chinese automaker BAIC, have indicated that they plan to purchase shares valued at $74.9m.
Concurrent private placements are also expected to bring in about $153.4m worth of shares.
Despite the challenges faced by the industry, such as safety concerns and regulatory hurdles, China’s swift approval of trials and support for economic goals have kept companies like Pony AI in the race for commercialisation.
The pursuit of a New York listing by Chinese firms is gaining momentum after a period of uncertainty following Didi Global’s forced delisting.
Beijing’s recent relaxation of its stance and the introduction of rules to facilitate offshore listings have provided more favourable environment for companies like Pony AI.
Despite challenges, such as a failed $12bn blank-check deal in 2021, Pony AI has secured $100m from Saudi Arabia’s NEOM last year and has retained backing from organisations like Ontario Teachers’ Pension Plan and venture capital firm HongShan.
