Pony AI Inc. is preparing to raise approximately HK$6.7 billion (around $862 million) through its Hong Kong listing after telling investors, the Chinese company is planning to offer shares at HK$139 each, according to Bloomberg.
The company intends to sell 42 million shares, with an option to sell an additional 6.3 million shares, which it is expected to fully exercise. The people familiar with the matter, who requested anonymity as the information has not been made public, said that a representative from Pony AI has not responded to inquiries for comment.
At this price, the shares would be priced at a slight discount of over 4% compared to their Nasdaq closing price of $18.68 on Friday. Initially, Pony AI had set the offering price at a maximum of HK$180 per share, but the value of its U.S.-listed shares has since declined.
The listing has drawn interest from major players, including ride-hailing giant Uber Technologies Inc., which has reportedly been in discussions to invest around $100 million in the offering. Pony AI went public in the U.S. last year, following the IPO of its competitor WeRide Inc., which also debuted on the Nasdaq.
Both Pony AI and WeRide are now aiming for simultaneous listings in Hong Kong on November 6. WeRide hopes to raise up to HK$3.1 billion through its offering.
The parallel IPOs of these two autonomous vehicle companies highlight the growing ambitions of Chinese firms in the race to lead the global driverless vehicle market, especially in light of China’s government setting a goal to become the global leader in autonomous driving by 2035.
Pony AI plans to use the funds raised from its Hong Kong listing to scale up the commercialization of its Level 4 autonomous driving technology for robotaxi and robotruck services. Additionally, the company intends to invest in further research and development. It has set a target of achieving profitability by 2028 or 2029.
The Hong Kong listing is being jointly sponsored by Goldman Sachs, Bank of America, Deutsche Bank, and Huatai International.
