(Bloomberg) — Pony AI Inc.’s U.S. deposit shares erased an early pop and fell 7.7% in their trading debut after raising $413.4 million in an initial public offering and simultaneous private placements after delaying pricing by a week.
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The Chinese autonomous driving startup’s shares closed Wednesday in New York at $12 each, below its initial public offering price. The company sold 20 million ADS in the offering at $13 per ADS, the top of the marketed range, to raise $260 million.
In addition, a group of investors agreed to purchase $153.4 million worth of the company’s common stock through a private placement. One ADS is equal to one ordinary share. The pricing gives the Guangzhou-based company a market value of $4.2 billion, based on outstanding ADS.
Pony’s prices were pushed back last week as the company increased the size of the deal and answered questions from regulators, Bloomberg News reported. Uber Technologies Inc. was among those showing interest in Pony AI stock, people familiar with the matter said.
The IPO adds to a modest rebound in Chinese companies listing in the U.S., led by auto companies including self-driving car company WeRide Inc. and EV maker Zeekr Intelligent Technology Holding Ltd. With Pony’s offering, Chinese companies have raised $1.2 billion through U.S. IPOs. this year, almost double the amount in the same period in 2023, but lower than the highs during the pandemic.
A unit of state-owned car manufacturer Beijing Automotive Group Co. and the venture capital arm of Singaporean taxi company ComfortDelGro Corp. had indicated an interest in purchasing Pony’s offering worth approximately $75 million, according to a previous filing.
Pony develops and operates self-driving vehicles, including trucks and robotaxis, in the US and China. The company is licensed to provide fully unmanned taxi services in Beijing, Shenzhen and Guangzhou, and has a fleet of more than 250 robotaxis and more than 190 robot trucks. The limited, U.S.-based testing will involve no more than 10 vehicles, the documents show.
The company is tapping U.S. capital markets as newly elected President Donald Trump’s second administration considers steps that could increase competition in the autonomous driving sector, where the U.S. and China are neck-and-neck in financing. The two countries also have the most robotaxi startups in the world.
Pony.ai’s backers also include Neom Co. of Saudi Arabia, the Ontario Teachers’ Pension Plan Board and HongShan Capital Group, the company formerly known as Sequoia Capital China. The company has a joint venture with Guangzhou Automobile Group and the Chinese branch of Toyota Motor Corp.
The offering was led by Goldman Sachs Group Inc., Bank of America Corp. Deutsche Bank AG, Huatai Securities and Tiger Brokers. The Company’s ADS trades on the Nasdaq Global Select Market under the symbol PONY.
(Updates with closing share price in first three paragraphs.)
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