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BEIJING - Autonomous mobility company Pony AI Inc. (NASDAQ:PONY), currently valued at $7.11 billion, announced Tuesday the launch of its initial public offering in Hong Kong of 41,955,700 Class A ordinary shares, seeking to establish a dual-primary listing on the Main Board of the Hong Kong Stock Exchange under the stock code 2026. According to InvestingPro data, the company's stock has shown remarkable momentum with an 87% return over the past six months.
The offering, which begins October 28, comprises a Hong Kong public offering of 4,195,600 shares and an international offering of 37,760,100 shares, representing 10% and 90% of the total offering respectively, subject to potential reallocation.
The company has set a maximum offering price of HK$180.0 (US$23.17) per share for the Hong Kong public offering, with the final international offering price to be determined around November 3 based on factors including the closing price of Pony AI's American depositary shares on Nasdaq, which currently trade at $19.68. InvestingPro analysis indicates the stock is trading above its Fair Value, with high price volatility being a notable characteristic.
Pony AI has secured US$120 million from cornerstone investors as part of the international offering. The company plans to use proceeds to execute its market strategies for commercializing its Level 4 autonomous driving technology, fund research and development, and provide working capital. Financial data from InvestingPro shows the company maintains a strong liquidity position with a current ratio of 6.19, though it reported an EBITDA of -$323.25 million in the last twelve months. Subscribers to InvestingPro can access 8 additional key financial insights about PONY's performance and prospects.
Goldman Sachs, BofA Securities, Deutsche Securities Asia Limited, and Huatai Financial Holdings are serving as joint sponsors for the offering.
The company's American depositary shares will continue trading on Nasdaq while the Hong Kong shares will become fungible with the ADSs after a 40-day distribution compliance period ending December 17.
According to the press release statement, Pony AI has granted underwriters an offer size adjustment option and an over-allotment option that could increase the total offering by up to 30% if fully exercised.
Founded in 2016, Pony AI develops autonomous driving technology for various transportation applications across China, Europe, East Asia, and the Middle East.
In other recent news, Pony AI has announced its plans for a global offering and dual primary listing on The Stock Exchange of Hong Kong Limited, having received a notice of filing results from the China Securities Regulatory Commission. This development is part of the company's ongoing efforts to expand its market presence. Additionally, Pony AI has received a permit from Dubai's Roads and Transport Authority to conduct autonomous driving trials, marking a significant step in its international expansion strategy. The company has begun pilot testing in Dubai with plans for commercial driverless services by 2026.
In the financial markets, Goldman Sachs has raised its price target for Pony AI to $27.70, maintaining a Buy rating, highlighting the company's expansion of its Robotaxi services in multiple Chinese cities. Meanwhile, ARK Invest has made its first investment in a Chinese firm focused on Level 4 autonomous driving technology, contributing approximately $12.9 million to Pony AI. This investment is part of a broader trend of institutional backing, with at least 14 major global investors supporting the company in the second quarter. Furthermore, UBS has initiated coverage on Pony AI with a Buy rating and a $20 price target, indicating a positive outlook on the company's future performance.
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