Toyota-backed Pony AI to raise $862 million in Hong Kong listing, marking major expansion beyond Nasdaq

Chinese autonomous driving startup Pony AI is preparing to raise about $862 million in its Hong Kong debut, signaling a major step in its push to scale beyond the U.S. market. The company is set to price its listing at HK$139 a share, according to two people familiar with the deal.

Pony AI plans to fully exercise an upsize option, issuing 6.3 million additional shares to bring the total raise to HK$6.7 billion ($862 million). The pricing represents a 4.2% discount from its latest close of $18.68 per share on Nasdaq. Bloomberg first reported the pricing guidance on Sunday evening.

“Pony AI Inc. is poised to raise HK$6.7 billion ($863 million) in its Hong Kong listing after telling prospective investors the Chinese autonomous-driving company plans to price shares at HK$139 each,” Bloomberg reported, citing people familiar with the matter.

The autonomous driving firm will list about 42 million shares in Hong Kong, with the maximum price capped at HK$180, according to its prospectus. The deal is expected to be priced later Monday, and shares will begin trading on November 6 on the Hong Kong Stock Exchange.

The move comes nearly a year after Pony AI raised $260 million in a U.S. IPO, valuing the company at $4.55 billion. The new Hong Kong listing is seen as part of its strategy to strengthen its foothold in Asia while maintaining visibility with U.S. investors.

Founded in 2016 by James Peng and Tiancheng Lou, Pony AI operates in both California and Beijing, with a focus on bringing safer, more reliable autonomous mobility to public roads. The company has spent years developing technology for robotaxis and commercial fleets as competition intensifies across both the U.S. and China.

In April 2022, Pony AI became the first autonomous-driving taxi company in China to secure a taxi license, a milestone that gave it the green light to operate self-driving vehicles on public roads. A year later, it partnered with Toyota to begin mass production of robotaxis in China. The joint venture, announced earlier this year, will build vehicles that integrate Pony AI’s self-driving software and ride-hailing services.

Still, the road ahead isn’t smooth. Public skepticism about self-driving technology, regulatory concerns over data privacy, and competition from rivals like Waymo and Tesla, which is testing its own driverless ride-hailing fleet in California and Texas, all present challenges.

For Pony AI, the Hong Kong listing is more than a capital raise—it’s a strategic move to balance its presence between two of the world’s biggest markets for autonomous vehicles. Whether it can convert that positioning into mainstream adoption remains the question investors are betting on next week.