Chinese autonomous driving company Pony.AI is pursuing a U.S. initial public offering (IPO) with a valuation target of up to $4.48 billion, marking a significant move as it prepares for a Nasdaq listing, the company disclosed on Thursday.
Backed by Japanese automaker Toyota, Pony AI aims to raise as much as $195 million by offering 15 million American Depositary Shares (ADS) priced between $11 and $13 each. The Guangzhou-based firm is seeking to advance its capital-raising efforts amid heightened competition in the autonomous driving industry, with rivals like WeRide recently debuting on Nasdaq.
Two investors, including Beijing-based automaker BAIC Group, have shown interest in purchasing shares worth $74.9 million as part of the IPO. Additionally, private placements could bring in $153.4 million, boosting overall funding.
Pony’s revised valuation marks a shift from its earlier ambitions. Following a $12 billion blank-check deal that was abandoned in 2021 amid regulatory pressures from Beijing, the company set a reduced IPO valuation minimum of $4 billion in September, down from $8.5 billion last year. The decision comes as Chinese companies cautiously reenter U.S. markets, following Beijing’s more accommodative stance on offshore listings.
Pony’s recent backing includes $100 million from Saudi Arabia’s NEOM, along with support from the Ontario Teachers’ Pension Plan and venture capital firm HongShan.
