China's Pony.ai seeks a valuation of up to $4.55 billion in its IPO in the United States
Chinese autonomous driving company Pony.ai seeks a valuation of up to $4.55 billion in its initial public offering (IPO) in the United States, planning to issue 20 million American depositary shares to raise up to $260 million. The company has received support from Toyota and is the latest Chinese robotaxi company to enter the U.S. capital market. The successful listing of WeRide has provided confidence for Pony.ai. This IPO will become the second-largest IPO of a Chinese company in the U.S. this year
Reuters, November 20 - China's Pony AI announced on Wednesday that its target valuation for its U.S. initial public offering (IPO) is up to $4.55 billion, indicating strong market demand for the Chinese robot taxi company's listing in New York.
Supported by Toyota (7203.T), Pony AI is currently seeking to raise up to $260 million by issuing 20 million American Depositary Shares (ADS), with a price range between $11 and $13 per share. The company had previously planned to sell 15 million ADS.
As the Chinese robot taxi industry seeks to expand its operations, Guangzhou-based Pony AI has become the latest Chinese robot taxi company to enter the U.S. capital market.
Two investors, including Chinese automaker Beijing Automotive (1958.HK), have expressed interest in purchasing $74.9 million worth of shares in the IPO. Some investors have also agreed to buy $153.4 million worth of shares in a concurrent private placement.
Competitor WeRide (WRD.O), another Chinese robot taxi company, went public on Nasdaq last month, raising $440.5 million in its IPO and concurrent private placement. As of the last close, the company's stock price has risen by 24.5%.
Matt Kennedy, a senior strategist at Renaissance Capital, said, "WeRide's deal has given them (Pony AI) some confidence to push this transaction forward, especially after Trump is re-elected as president."
"The prospect of Trump's election has always been – and will continue to be – a source of uncertainty for any large Chinese issuer in the U.S. market. Right now, they see an opportunity to go public and are seizing it."
The U.S. IPO of Momenta, an autonomous driving company backed by General Motors (GM.N), also received approval from Chinese securities regulators in June.
Pony AI's IPO financing amount of $260 million will become the second-largest IPO by a Chinese company in the U.S. this year, second only to ZEEKR. It will also exceed the company's initial target