China’s tech crackdown thwarts Pony.ai’s US listing plans, insiders say
- The autonomous driving start-up’s hold on going public follows Beijing’s move to ban ride-sharing giant Didi from signing up new users soon after its IPO
- The company will now seek to raise money in a private fundraising round at a valuation of US$12 billion
Autonomous driving start-up Pony.ai has put on hold plans to go public in New York through a merger with a blank-cheque firm at a US$12 billion valuation, after it failed to gain assurances from Beijing that it would not become a target of a crackdown against Chinese technology companies, people familiar with the matter said.
The decision makes Pony.ai one of the biggest companies to suspend its US listing plans after China banned ride-sharing giant Didi Global Inc from signing up new users just days after its blockbuster initial public offering (IPO) in June.
It followed up with crackdowns on other Chinese technology firms over concerns about the safety of user data, which led to some companies, such as LinkDoc Technology and Hello Inc, scrapping their US listing plans.
The Toyota Motor Corp-backed start-up will now seek to raise money in a private fundraising round at a valuation of US$12 billion, said the sources, who requested anonymity because the matter is confidential. It still hopes for a US listing in the unlikely event it receives a green light from the Chinese government imminently, the sources added.
Operating in both the United States and China, Pony.ai maintains a significant presence in Chinese cities including Beijing and Guangzhou, where it launched commuter pilots and signed partnerships with Chinese state-owned auto groups.