China’s Pony AI seeks up to $4.55 billion valuation in upsized US IPO

(Reuters) -Pony AI said on Wednesday it was targeting a valuation of up to $4.55 billion in its upsized initial public offering in the United States, indicating strong demand for the Chinese robotaxi firm’s long-sought New York listing.

The Toyota-backed company is now aiming to raise as much as $260 million by offering 20 million American depositary shares (ADSs) priced between $11 and $13 each. It was earlier planning on selling 15 million ADSs at the same price range.

Guangzhou-based Pony is among a clutch of Chinese robotaxi firms tapping U.S. capital markets as the industry looks to scale its operations.

Two investors, including Chinese carmaker BAIC, had indicated interest in buying shares worth $74.9 million in the IPO. Certain investors had also agreed to purchase $153.4 million worth of shares in concurrent private placements.

Rival Chinese robotaxi firm WeRide went public on the Nasdaq last month after raising $440.5 million in its IPO and concurrent private placements.

“WeRide’s trading has given them (Pony AI) some confidence to move forward with this deal, particularly following Trump’s re-election,” Renaissance Capital senior strategist Matt Kennedy said.

“The prospect of a Trump presidency had been – and continues to be – a source of uncertainty for any large Chinese issuer in the U.S. For now, they see an opportunity to go public and they’re taking it.”

At $260 million, Pony’s New York listing would be the second-biggest U.S. IPO this year by a China-based company, after electric-vehicle maker Zeekr’s $441 million May IPO, LSEG data showed.

The company plans to list on the Nasdaq under the symbol “PONY”.

The offering is being underwritten by Goldman Sachs, BofA Securities, Deutsche Bank (ETR:DBKGn), Huatai Securities and Tiger Brokers.