China's AV startup Pony AI secures $260M in US IPO, valued at $4.55B

Chinese autonomous vehicle startup Pony AI has successfully completed its initial public offering (IPO) in the United States, raising $260 million. The IPO values the company at approximately $4.55 billion.

The funds were raised amid a climate of growing investor interest in U.S. markets, particularly in technology firms.

The successful IPO is a significant event, as it could signal the market's receptiveness to China-based companies under the current U.S. administration, especially in the competitive sector of autonomous driving technology.

This market debut follows a period of nearly two years marked by uncertainty for Chinese companies in U.S. markets. The delisting of Didi Global due to regulatory issues in China had cast a shadow over Chinese firms.

The company's IPO consisted of the sale of 20 million American depositary shares, each priced at $13. Alongside the IPO, Pony AI also secured $153.4 million through a concurrent private placement.

Despite the fresh capital, the company, which is backed by Toyota Motor (NYSE:TM ), has seen a decrease in valuation from its peak of $8.5 billion two years prior.

Shares of Pony AI are anticipated to begin trading on the NASDAQ later on Wednesday.

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Source: Investing.com