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Pony AI, a China-based autonomous vehicle company that offers robotaxi services, said on Wednesday it had sold $260 million in its IPO, valuing the firm at around $4.55 billion. The company, whose investors include Toyota Motor, priced the sale of 20 million American depositary shares at $13 each, the high end of the range.
This is the most important moment in the relationship of U.S.-China in the realm of technology, given the competition by both world superpowers over superiority in cutting-edge technologies like self-driving cars. The listing of Pony AI has taken place during times when tension is high between the U.S. and China, particularly regarding those industries that would make all the difference for the future: autonomous driving, artificial intelligence, and many other innovative technologies. The listing will give a preview of how U.S. investors are reacting to the increased number of Chinese tech companies that are seeking access to the U.S. capital markets.
Pony AI is the latest China-based company to seek the U.S. stock market following a series of similar IPOs by other Chinese tech companies. Earlier this year, electric vehicle maker Zeekr and self-driving technology company WeRide also went public in the U.S., with both companies seeing positive trading performances. As of now, Zeekr’s stock is up by 6.5% from its IPO price, while WeRide has seen an increase of nearly 13%. Despite these positive outcomes, Pony AI’s valuation is lower than its previous $8.5 billion valuation from two years ago.
The IPO also highlights the growing interest from investors in disruptive technologies within the automotive sector. This interest is particularly strong in the context of the autonomous driving revolution. Notably, Uber, a prominent player in the ride-sharing and autonomous vehicle industries, is reportedly planning to invest in Pony AI’s IPO, according to sources at Bloomberg News. This underscores the potential for collaborations and investments that could further drive innovation in the autonomous driving space.
In addition to the public issue, Pony AI has generated another $153.4 million in private placement to consolidate its financial position as it builds on its robotaxi services and autonomous driving technologies. The company’s shares are to start trading on the Nasdaq later today, and the stock is likely to attract close attention from both US and international investors as the firm joins a growing number of Chinese firms seeking to build a presence on the global stage.
The underwriting for Pony AI’s IPO was handled by a consortium of major financial institutions, including Goldman Sachs, Bank of America Securities, Deutsche Bank, Huatai Securities, and Tiger Brokers. These firms played a crucial role in guiding the company through the listing process, helping to secure strong investor interest and facilitating the IPO’s successful launch.
The U.S. offering by Pony AI follows years of technical, but also political challenges between the United States and China. More recently, resolution of an accounting dispute has opened up the possibility of more Chinese firms coming into the capital markets of the United States, marking an important turn in the broader relationship of these two economic powerhouses.
As the autonomous driving sector continues to gain traction globally, Pony AI’s IPO could serve as a bellwether for future listings from other Chinese tech companies aiming to capture the growing demand for self-driving technologies. With significant backing from Toyota and a strong investor base, Pony AI is positioning itself as a major player in the global race toward the development and deployment of autonomous vehicles.
