Pony AI's $260 mln IPO gauges U.S. investor appetite for Chinese firms
Pony AI prices IPO at top of target range
Chinese self-driving startup to start trading in New York
IPO values Toyota-backed firm at $4.55 billion
Adds details and context on IPO market in paragraphs 3, sector context in paragraphs 4, 6, 10
Nov 27 (Reuters) - China'sPony AI said on Wednesday it had raised $260 million in its U.S. initial public offering, valuing the robotaxi startup ataround $4.55 billion, the latest to bank on improved investor sentiment in U.S. markets.
The company's performancecould indicate how investors approach China-based firms under the current U.S. administration as both nations compete for dominance in autonomous driving technology.
The IPO also comes after nearly two years of uncertainty following Didi Global's delisting amid regulatory backlash in China, with Beijing easing tensions by resolving a long-standing audit dispute with the U.S. accounting watchdog in December 2022.
However, the company faces other challenges, including public skepticism about autonomous vehicles, data privacy concerns, and competition from companies, including Elon Musk's Tesla TSLA.O, which has promised to roll out driverless ride-hailing services to the public in California and Texas next year.
Pony AI has said that its U.S. operations will remain "limited in scope" for the foreseeable future.
Other China-based companies, including EV maker Zeekr ZK.N and self-driving tech firm WeRide WRD.O, also went public in the U.S. earlier in the year amid a backdrop of the country's IPO market picking up recently, with investors showing renewed interest in promising tech startups.
Pony AIsold 20 million American depositary shares in the IPO, pricedto investors at $13 each. Italso raised an additional $153.4 million in concurrent private placement.
The Toyota Motor 7203.T-backed company's valuation has come down from $8.5 billion two years ago.
It is expected to start trading on the Nasdaq later on Wednesday.
Analysts caution that widespread robotaxi adoption could take years due to safety and reliability challenges, although China has been quicker to approve trials than the U.S.
Pony AI remains unprofitable as it invests in expanding operations.
Reporting by Niket Nishant and Manya Saini in Bengaluru; Editing by Shilpi Majumdar and Tasim Zahid
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
