Pony.ai US IPO Successfully Raises $260M, Stock to Debut at $13 Per Share
Chinese robotaxi startup, Pony AI has said that it raised $260 million through the initial public offering in the US. The amount raised through the Pony AI IPO has pushed the startup’s valuation to about $4.55 billion.
According to Reuters, the startup’s performance in the IPO points to investor receptiveness of China-based companies under the Biden administration. The US and China have been competing to dominate the autonomous driving tech industry.
Years of Uncertainty
The Chinese tech IPO took place after about two years of uncertainty following the global delisting of another Chinese company, Didi three years ago. The delisting happened amidst regulatory backlash in China. The country eased the tensions by addressing a prolonged audit dispute with the US regulatory agencies in December 2022.
Even with the IPO completed, Pony AI still faces other challenges in the US robotaxi market. These include data privacy concerns, rising public skepticism about robotaxis, and stiff competition from companies such as Waymo and Elon Musk’s Cybercab. Tesla has promised to introduce public autonomous ride-hailing services in Texas and California in 2025.
Limited Scope
The Guangzhou-based autonomous vehicle company says that its operations in the US will be limited, at least in the foreseeable future. Pony.ai was founded in 2016 in Silicon Valley. The startup manufactures and operates fleets of autonomous vehicles in China and the US. Its vehicles include robotaxis and trucks.
The company got a permit to provide fare-charging, fully automated taxi services in China’s Guangzhou city in December 2023. Pony.ai has established research and development centers in Silicon Valley in the US and in Beijing, Guangzhou, and Shanghai in China.
Earlier this year, several China-based companies went public in the US. These include self-driving company, WeRide and EV manufacturer Zeekr.
The two companies went public at a time when the company’s IPO market was picking up. At the time, US investors were starting to show renewed interest in viable tech startups.
US Trading
Shares of the Toyota Motor-backed startup will start trading on November 27, 2024 on the Nasdaq. Pony AI’s IPO raised $153.4 million through concurrent private placement. The autonomous vehicle company sold 20 million depositary shares through the IPO. Pony AI IPO’s price was $13 per share. Even as it woes US investors, Pony AI’s valuation has dropped from $8.5 billion about two years ago to the current $4.55 billion.
The self-driving startup went public about its plan to go public in the US back in October 2024. At the time, the company said it was seeking to raise about $300 million, but said that the amount could change.
Analysts say that widespread adoption of autonomous vehicles could take years, The slow adoption of this travel technology is attributed to safety concerns and reliability challenges. Unlike China, the US has been slow to approve trials of self-driving vehicles compared to China.
