China's robotaxi startup Pony AI raises $260 mln in US IPO (updated)

Pony AI

27/11/2024 10:54

(Updates with details from para 2 onwards)
       Nov 27 (Reuters) - Pony AI said on Wednesday it had
raised $260 million in its U.S. initial public offering, valuing
the China-based robotaxi company at around $4.55 billion.
        It sold 20 million American depositary shares in the
offering priced to investors at $13 each, the high-end of its
targeted range. 
  
    Pony AI's listing may show how U.S. investors approach
China-based companies under Donald Trump's administration,
especially as the two biggest economies in the world vie for
dominance in high-stakes industries such as autonomous driving.
        The company is set to join a growing cohort of
China-based firms tapping U.S. capital markets following the
resolution of a longstanding accounting dispute between the two
countries.
        Other China-based companies, including EV maker Zeekr
 ZK.N  and peer self-driving tech firm WeRide  WRD.O , also went
public in the U.S. earlier in the year. 
    Zeekr is trading 6.5% higher than its IPO price, while
WeRide is up nearly 13%.
  
        The Toyota Motor  7203.T -backed company's valuation has
come down from the $8.5 billion two years ago.
  
            But the automotive sector's focus on disruptive
technologies has led to interest from investors like Uber
 UBER.N , who Bloomberg News reported as planning to invest in
the IPO.
        Pony AI, which will begin trading on the Nasdaq later on
Wednesday, also raised an additional $153.4 million in
concurrent private placement.  
  
        Goldman Sachs, BofA Securities, Deutsche Bank, Huatai
Securities and Tiger Brokers were the underwriters for the IPO. 
  

 (Reporting by Niket Nishant and Manya Saini in Bengaluru;
Editing by Shilpi Majumdar and Tasim Zahid)
 ((Niket.Nishant@thomsonreuters.com))