Pony.ai Launches IPO, Dual Listing Fails to Mask Business Concerns

ZC Asia has learnt that autonomous driving technology company Pony.ai-W (02026.HK) formally commenced its Hong Kong IPO on 28 October 2025. The company intends to offer approximately 41.9557 million shares globally, comprising a 10% Hong Kong public offering and a 90% international offering, with a 15% over-allotment option. The offer price per share will not exceed HK$180, with each lot comprising 100 shares. Trading of Class A ordinary shares is expected to commence on the Hong Kong Stock Exchange at 9:00 am on 6 November.

The offering has secured cornerstone investments totalling approximately US$120 million from four investors, including Eastspring and Ghisallo. At the maximum offer price and assuming no exercise of the over-allotment option, the company expects to raise net proceeds of approximately HK$7.1936 billion.

The company plans to allocate approximately 50% of the proceeds towards commercialising its Level 4 autonomous driving technology over the next five years, encompassing both Robotaxi and Robotruck operations. A further 40% will be invested in technological research and development.

Despite Pony.ai highlighting in its prospectus its status as the ‘only Level 4 autonomous driving company holding full-category Robotaxi regulatory permits across China's four major first-tier cities,’ its actual business performance remains somewhat underwhelming.

Financial data reveals that from 2022 to 2024, the company's Robotaxi revenue stood at US$8.967 million, US$7.675 million, and US$7.30 million respectively – marking three consecutive years of decline. This figure remains a mere fraction of its autonomous truck and technology licensing businesses. As of the first half of 2025, this segment still accounted for less than 10% of total revenue, starkly contrasting with its ‘strategic priority’ positioning.

From 2023 to 2024, Pony.ai's total revenue increased from $71.899 million to $75.025 million, yet its gross profit declined from $16.884 million to $11.403 million during the same period. In the first half of 2025, revenue reached approximately $35.434 million with a gross profit of $5.779 million, representing a 43.34% year-on-year increase; however, the net loss widened to $90.64 million, a 75.07% year-on-year expansion.

Since the start of this year, Pony.ai has repeatedly drawn attention due to autonomous driving safety concerns. In May 2025, a Robotaxi caught fire in Beijing's Yizhuang area, leading to a temporary suspension of services in the region. Although the company stated ‘no collision occurred,’ footage showing severe vehicle damage intensified public scepticism regarding the system's reliability.

Furthermore, US short-seller Grizzly Research noted in a July report that Pony.ai had its testing permit suspended by the California Department of Motor Vehicles in 2021 due to inadequate safety controls, and faced investigation by the US National Highway Traffic Safety Administration. Although the licence was subsequently reinstated, these safety records continue to tarnish its international reputation.

Against a backdrop of lacklustre business performance, unresolved safety controversies, and an unproven profit model, Pony.ai's dual listing in Hong Kong is viewed as a crucial step to broaden financing channels. Yet it also subjects the company to heightened public scrutiny. Rebuilding market confidence while advancing its Level 4 commercialisation efforts will constitute a long-term challenge post-listing.

Disclaimer: The content herein is for reference only and does not constitute any form of investment advice. Should any information contained herein prove inaccurate, incomplete, or potentially misleading, please refer to the company's official announcements. Market risks exist; investment requires caution.