Chinese autonomous vehicle startup Pony AI is setting its sights on a sizable Nasdaq IPO, boosting its fundraising target to around $260 million. This represents a significant jump from its previous goal of $224 million, as the company looks to capitalize on investor demand for Chinese AV players on U.S. exchanges.
Pony AI plans to sell up to 20 million American depository shares as part of the offering, scaling back from an earlier $425 million target. This move comes after the company’s board approved a reduction in its minimum valuation from around $8 billion to $4 billion.
The startup has faced some early challenges in the U.S. market, including the loss of its permit to test autonomous vehicles in 2022. However, Pony AI maintains an impressive fleet of 190 “robotrucks” in Beijing and Guangzhou, as well as 250 robotaxis operating in major Chinese cities.
Despite the setbacks, there appears to be continued investor appetite for Chinese AV companies on U.S. stock exchanges. Pony AI’s revised fundraising goal suggests the company is working to fine-tune its pitch to appeal to American investors.
As Pony AI gears up for its Nasdaq debut, the startup will need to demonstrate its technological capabilities, operational prowess, and growth potential to convince the market of its long-term value proposition.
