Pony AI, a China-based developer of autonomous vehicle systems for robotaxis and robotrucks, raised the proposed deal size for its upcoming IPO on Wednesday.
The Guangzhou, China-based company now plans to raise $240 million by offering 20 million ADSs at a price range of $11 to $13. The company had previously filed to offer 15 million ADSs at the same range. New investors have still indicated on $75 million worth of ADSs in the offering (31% of the deal), and the company still plans to raise an additional $153 million in a concurrent private placement. At the midpoint, Pony AI will raise 33% more in proceeds than previously anticipated.
Through partnerships with leading OEMs, including Toyota, GAC, and SAIC, Pony AI aims to mass produce autonomous driving technology used in robotaxis, robotrucks and other applications. It currently operates a fleet of over 250 robotaxis, which have been licensed to operate without a driver in all four Tier-1 cities in China, and 190 robotrucks. To date, it has generated a majority of its revenue from licensing its technology (e.g. proprietary vehicle domain controller products, data analytics tools) to OEMs, and providing robotruck logistics services, but expects its robotaxi services, which include AV software deployment and maintenance, vehicle integration and engineering and road testing, and to a lesser extent passenger rides, to become a larger portion of revenue in the future.
Pony AI was founded in 2016 and booked $84 million in revenue for the 12 months ended June 30, 2024. It plans to list on the Nasdaq under the symbol PONY. Goldman Sachs (Asia), BofA Securities, Deutsche Bank, Huatai Securities, and Tiger Brokers are the joint bookrunners on the deal. It is now expected to price during the week of November 25, 2024.
