China's Pony AI seeks up to $4.55 bln valuation in upsized US IPO
Adds analyst comments in paragraphs 7-8, background and details on IPO in paragraphs 3-5, 9-10
Nov 20 (Reuters) -Pony AI said on Wednesday it was targeting a valuation of up to $4.55 billion in its upsized initial public offering in the United States, indicating strong demand for the Chinese robotaxifirm's long-sought New York listing.
The Toyota-backed 7203.T company is now aiming to raise as much as $260 million byoffering 20 million American depositary shares (ADSs) priced between $11 and $13 each. It wasearlier planning on selling 15 million ADSs at the same price range.
Guangzhou-basedPony is among a clutch of Chinese robotaxi firms tapping U.S. capital markets as the industry looks to scale its operations.
Two investors, including Chinese carmaker BAIC 1958.HK, had indicated interest inbuying shares worth $74.9 million in the IPO. Certain investors had also agreed to purchase $153.4 million worth of shares in concurrent private placements.
Rival Chinese robotaxi firm WeRide WRD.O went public on the Nasdaq last month after raising $440.5 million in its IPO and concurrent private placements.
"WeRide's trading has given them (Pony AI)some confidence to move forward with this deal, particularly following Trump's re-election," Renaissance Capital senior strategist Matt Kennedy said.
"The prospect of a Trump presidency had been - and continues to be - a source of uncertainty for any large Chinese issuer in the U.S. For now, they see an opportunity to go public and they're taking it."
At $260 million, Pony's New York listing would be the second-biggest U.S. IPO this year by a China-based company, after electric-vehicle maker Zeekr's ZK.N$441 million May IPO, LSEG data showed.
The company plans to list on the Nasdaq under the symbol "PONY".
The offering is being underwritten by Goldman Sachs, BofA Securities, Deutsche Bank, Huatai Securities and Tiger Brokers.
Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Shounak Dasgupta and Devika Syamnath
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.
