Pony AI Gears Up For $4.48B Valuation In US IPO Amid Autonomous Vehicle Boom

Pony AI Inc., a leading Chinese autonomous vehicle technology company founded in 2016, gears up for its initial public offering (IPO), offering 15 million American depositary shares (ADSs) expected to be priced between $11 and $13 per share. The company filed for its initial offering in the U.S. in October.

The company’s targeted price range implies a valuation of up to $4.48 billion at the top end, per a regulatory filing. The calculations are based on the 344.95 million ordinary shares issued and outstanding immediately after the completion of this offering.

The company is known for its cutting-edge robotaxi and robotruck services. It has established strong industry partnerships and holds unique driverless service licenses across major Chinese cities, positioning it as a significant player in the autonomous vehicle sector.

Pony.ai plans to list its ADSs on the Nasdaq under the symbol “PONY.” At an assumed $12 per ADS mid-point of the estimated offering price, the company expects net proceeds of $159.8 million from the IPO (or $184.9 million with full over-allotments) and $153.4 million from private placements. Proceeds will support market expansion, R&D, and potential strategic investments.

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Pony AI’s total revenues rose 85.5%, reaching $39.5 million for the nine months ending September 30, 2024. Revenues from robotaxi services jumped from $0.9 million to $4.7 million, driven by AV engineering projects in South Korea and expanded fare-charging operations in China.

Robotruck services revenues for the nine months grew 56.5%, hitting $27.4 million, thanks to increased transportation fees from fleet expansion and higher mileage by Cyantron, which added 45 robotrucks and covered over 17 million kilometers.

Chinese autonomous vehicle startup WeRide Inc., WRD, a key competitor to Pony AI, completed its IPO of 7.74 million ADSs at $15.50 per share, potentially raising $458.5 million with full over-allotments. Each ADS represents three Class A shares. WeRide’s ADSs began trading on Nasdaq under the symbol “WRD” on October 25, 2024.

Image: Shutterstock/ Andrii Yalanskyi

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