Pony AI, a Chinese autonomous driving startup, files for up to $224 million US IPO.

Chinese Self-Driving Technology Company Prepares for Public Debut

Pony AI is getting closer to making its initial public offering (IPO) in the United States. However, as it does so, the company continues to adjust its expectations regarding the amount of money it hopes to raise through this transaction.

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Pony’s Expanding Fleet and Operations

The Chinese self-driving technology company operates a fleet of 190 "robotrucks" in Beijing and Guangzhou, as well as over 250 robotaxis in four major cities: Beijing, Guangzhou, Shenzhen, and Shanghai. According to TechCrunch, Pony can charge for robotaxi fares in all four cities and is fully driverless in Beijing, Guangzhou, and Shenzhen.

IPO Details

In a recent filing with the US Securities and Exchange Commission (SEC), Pony announced its plans to issue 15 million American Depository Shares. The company also stated that it may issue an additional 2.25 million shares if there is high demand for the offering. The expected price range for the IPO is between $11 and $13 per share.

At a price of $13 per share, Pony’s valuation would reach $4.48 billion, based on 344.9 million outstanding shares immediately following the offering. This would represent a significant decrease from the company’s previous valuation of $8.5 billion in 2022, following a Series D funding round where Toyota participated.

Potential Revenue

According to the filing, Pony could potentially rake in up to $224 million from the IPO at the higher end of its expected price range. However, this is significantly lower than the company’s initial target of $425 million. At a minimum, Pony would collect $165 million, which is also below the $200 million minimum set in September.

Growing Appetite for Chinese Tech Companies

Pony’s IPO comes at a time when there appears to be a growing appetite among US investors for Chinese technology companies, despite increasing geopolitical tensions and potential tariffs on Chinese imports. This trend has been observed in recent months with the listing of other Chinese companies, including Zeekr, which debuted on the New York Stock Exchange (NYSE) in May with $441 million in gross proceeds.

Autonomous Vehicle Sector

Pony AI’s IPO follows closely behind that of WeRide, another autonomous vehicle startup, which listed on the NASDAQ in October and raised $440.5 million through its IPO and private placement. The success of these companies has sparked interest among investors and may pave the way for further listings from Chinese tech companies.

Listing Details

Pony AI will list on the NASDAQ under the ticker symbol "PONY." This listing marks a significant milestone for the company, which is set to join other prominent autonomous vehicle startups in the US market.