Chinese robotaxi firm Pony AI files for U.S IPO
An autonomous vehicle jointly developed by Toyota and Pony.ai is on display during the 3rd China International Import Expo (CIIE) at the National Exhibition and Convention Center on November 5, 2020 in Shanghai, China.
Visual China Group | Getty Images
China-based autonomous driving firm Pony AI, backed by automaker Toyota, filed for an initial public offering in the U.S. on Thursday, in another sign of growing investor interest in new listings and easing regulatory pressures.
Activity in the IPO market has picked up pace in recent weeks, buoyed by the U.S. Federal Reserve kicking off its highly anticipated policy-easing cycle and benchmark indexes trading near record high levels.
Pony AI, in which Japan’s Toyota owns a 13.4% stake, revealed that its revenue nearly doubled to $24.7 million in the first half of 2024. Net loss attributable to the company was $51.3 million in the same period, compared with $69.4 million last year.
The company said it operates a fleet of over 250 robotaxis, which have accumulated over 33.5 million kilometers of autonomous driving mileage, including over 3.9 million kilometers of driver-less mileage.
The company was valued at $8.5 billion when it raised funds in 2022. It also secured $100 million from Saudi Arabia’s NEOM last year.
Even so, analysts and industry experts note that establishing robotaxis may still take years, primarily due to the challenges of ensuring safety and reliability. They cite accidents and the technology’s struggles to respond to situations such as inclement weather, complex intersections and unpredictable pedestrian behavior.
The number of Chinese companies that pursued stock market flotations in the U.S. dropped in the past few years after Beijing clamped down on offshore capital-raising in 2021.
EV maker Zeekr’s debut in May was the first big listing by a Chinese company in the U.S. since then. Earlier this month, courier delivery firm BingEx also listed on the Nasdaq.
Pony AI has applied to list on the Nasdaq stock exchange under the ticker symbol “PONY.” The company did not reveal the size of its offering.
Goldman Sachs, BofA Securities, Deutsche Bank, Huatai Securities and Tiger Brokers are the underwriters of the offering.
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