Chinese Autonomous Vehicle Startup Pony AI Raises $260 Million in U.S. IPO, Achieves $4.55 Billion Valuation

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

The funds were raised amidst a growing interest from investors in the U.S. markets, particularly towards technology companies. This successful IPO is a significant event, as it may indicate an open market for China-based companies, especially in the competitive autonomous driving technology sector, under the current U.S. administration.

This market debut follows nearly two years of uncertainty for Chinese companies in the U.S. markets, exacerbated by regulatory issues leading to the delisting of Didi Global, which cast a shadow over Chinese firms.

The company's IPO consisted of the sale of 20 million American depositary shares, each priced at $13. In addition to the IPO, Pony AI raised a further $153.4 million through a concurrent private placement.

Despite the new capital, the Toyota Motor-backed company has experienced a decline from its peak valuation of $8.5 billion two years ago.

Pony AI's shares are expected to begin trading on NASDAQ later on Wednesday.