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Pony's proposed target is a climbdown from its $8.5 billion valuation in a 2022 funding round

Pony AI announced its plans to pursue a valuation of up to $4.48 billion in its upcoming US IPO, according to a report published by Reuters on Nov. 14. Founded in 2016 and supported by Japanese automaker Toyota, Pony AI is looking to raise up to $195 million by offering 15 million American Depositary Shares, priced between $11 and $13 each.

The move comes as self-driving technology firms are actively seeking capital to expand their operations. Based in Guangzhou, mainland China, Pony AI operates a fleet of over 250 robo-taxis and 190 robo-trucks. The company is entering the US stock market shortly after its competitor, WeRide, made its debut on the Nasdaq in October.

Among the investors showing interest in Pony AI's IPO is mainland Chinese carmaker BAIC, which, along with another investor, plans to purchase shares worth $74.9 million. Additionally, certain investors have agreed to acquire approximately $153.4 million worth of shares through concurrent private placements.

Pony AI's current valuation target represents a reduction from its previous $8.5 billion valuation during a 2022 funding round. In September 2024, the company's board decided to lower the minimum IPO valuation to $4 billion from $8.5 billion and reduced the expected proceeds to $200 million from $425 million.

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