Chinese autonomous driving startup Pony.ai is gearing up for an initial public offering (IPO) in the United States as early as September, sources familiar with the matter have revealed, Jiemian reported on Tuesday. The company, which has garnered significant interest from institutional investors, is making a significant move in a challenging autonomous vehicle sector.
Founded in 2016, Pony.ai has become a prominent player in the autonomous driving industry, focusing on autonomous ride-hailing services, self-driving trucks, and intelligent driving for passenger cars. The company operates research and development centers in Silicon Valley, Beijing, Shanghai, Guangzhou, and Shenzhen and has secured autonomous driving testing and operational licenses in multiple locations across China and the U.S.
The primary challenge for Pony.ai's U.S. listing is finding a valuation that meets the expectations of the founding team, early investors, and secondary market investors. Balancing these interests is crucial for a successful IPO. Pony.ai has not yet confirmed its IPO plans.
Co-founded by James Peng and Lou Tiancheng, Pony.ai has received substantial backing from prominent investors, including Toyota and Nio Capital. Peng, who previously served as the chief architect of Baidu's autonomous driving division, brings significant strategic planning and technical development expertise. Lou, known in the computer programming community by his competition ID "ACRush," has experience from his tenure at Google X (now Waymo) and Baidu's autonomous driving unit.
Pony.ai has been proactive in securing investments and forming strategic partnerships to bolster its position in the autonomous driving market. In late 2019, Nio Capital invested an undisclosed amount in the company. In 2020, Pony.ai raised $400 million from Toyota. More recently, in October 2023, Pony.ai completed a Series D2 funding round, securing a $100 million investment from Saudi Arabia's Neom and its investment fund NIF (Neom Investment Fund), valuing the company at $8.5 billion.
In addition to its funding achievements, Pony.ai has entered into strategic agreements to enhance its operational capabilities. On August 4, 2023, the company signed an agreement with Toyota and GAC Toyota, Toyota's joint venture in China, to create a joint venture focused on operating robotaxi services.
Pony.ai's journey toward a U.S. IPO has been marked by regulatory considerations and market dynamics. The company initially contemplated a U.S. listing in 2021, but plans were put on hold due to increased scrutiny by the U.S. Securities and Exchange Commission (SEC) on Chinese companies seeking to go public in the U.S. However, the renewed IPO plans reflect both the company's financing strategy and potential influences from investment agreements and timing.
In April 2023, Pony.ai received clearance for overseas listing from the China Securities Regulatory Commission (CSRC). The company plans to issue up to 98.15 million ordinary shares and list on either the Nasdaq or the New York Stock Exchange.
The autonomous driving sector has seen a surge in IPO activity this year. WeRide Inc., another prominent player, is considering a U.S. IPO by the end of August, aiming to raise up to $500 million. Similarly, lidar solutions provider RoboSense listed on the main board of the Hong Kong Stock Exchange in January, raising HKD 877 million. Other companies like Zongmu Technology, Horizon Robotics, Black Sesame Technologies, and Ruqi Mobility have also submitted or updated their prospectuses, indicating a broader trend of IPO activity in the sector.
