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China's Pony AI seeks up to $4.55 billion valuation in upsized US IPO

Published 11/20/2024, 07:27 AM
Updated 11/20/2024, 08:20 AM
© Reuters. A logo of the autonomous driving technology startup Pony.ai is seen on a screen during an event in Beijing, China May 13, 2021. REUTERS/Tingshu Wang/ File Photo

(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 robotaxi firm's long-sought New York listing.

The Toyota-backed company is now aiming to raise as much as $260 million by offering 20 million American depositary shares (ADSs) priced between $11 and $13 each. It was earlier planning on selling 15 million ADSs at the same price range.

Guangzhou-based Pony 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, had indicated interest in buying 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 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 $441 million May IPO, LSEG data showed.

© Reuters. A logo of the autonomous driving technology startup Pony.ai is seen on a screen during an event in Beijing, China May 13, 2021. REUTERS/Tingshu Wang/ File Photo

The company plans to list on the Nasdaq under the symbol "PONY".

The offering is being underwritten by Goldman Sachs, BofA Securities, Deutsche Bank (ETR:DBKGn), Huatai Securities and Tiger Brokers.

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