Pony.ai Goes Public on Nasdaq with $299M IPO

On November 27th, Pony.ai, the Chinese autonomous driving firm, went public on the NASDAQ under the ticker “PONY,” marking its entry as a notable robotaxi company on the stock exchange. The company increased its offering to 23 million American Depositary Shares (ADS), with each share priced at $13.

With the potential exercise of underwriters’ over-allotment options, Pony.ai could raise $299 million, making it the largest IPO in the autonomous driving sector on the U.S. stock market this year. 

This IPO, which valued Pony.ai at $4.55 billion, showed a resurgence of U.S. investor confidence in Chinese tech firms despite ongoing geopolitical challenges. The company celebrated its public debut by ringing the Nasdaq opening bell to advance autonomous vehicle technology worldwide.

Initially planning to issue 15 million American Depositary Shares (ADS), the company increased the offering size to 20 million ADS at $13 per share. It raised approximately $260 million, with the option to further increase the total to $299 million if the over-allotment option is fully exercised. 

Since its establishment in 2016, Pony.ai has emerged as a major player in the commercialization of autonomous driving, achieving significant milestones. In 2018, the company introduced China’s robotaxi service and has since obtained approvals for autonomous travel operations in key cities such as Beijing, Shanghai, Guangzhou, and Shenzhen.

The company’s success in the IPO is seen as a breakthrough moment for the robotaxi sector, which continues to face challenges, including safety concerns and data privacy issues. Despite these hurdles, Pony.ai remains optimistic about the future of autonomous driving and its ability to shape the global transportation landscape.

In the first three quarters of 2024, Pony.ai reported a year-on-year revenue increase across all its business segments. Revenue from autonomous driving travel services surged by over 422%, while the freight services and technology licensing arms also grew substantially. 

Despite the IPO’s success, Pony.ai faces stiff competition, particularly from companies like Tesla, which will launch its robotaxi service in the U.S. in the coming years. The company’s valuation has also seen some decline, down from $8.5 billion two years ago. Nevertheless, analysts see long-term growth potential in Pony.ai’s vision for autonomous driving, which remains a key player in the race for safe, reliable, and efficient self-driving technology.

Toyota is the largest shareholder, while Sequoia China is the earliest and most crucial financial investor. Toyota’s Executive Deputy General Manager, Hamada Takeo, emphasized the alignment of Pony.ai’s vision with the future of China’s automobile industry, highlighting autonomous driving as a key smart feature that aligns with the company’s goals of making autonomous driving accessible and providing freedom of mobility.