(Yicai) Nov. 28 -- Pony.ai’s shares ended 7.7 percent down on their first day of trading in New York after the Chinese autonomous driving startup raised USD452 million in an initial public offering and a concurrent private placement.

After soaring by more than 21 percent at one point in the morning session, Pony.ai [NASDAQ: PONY] closed at USD12 a share yesterday, below its USD13 IPO price, giving it a market capitalization of USD4.2 billion. 

The Guangzhou-based company secured as much as USD299 million from selling 23 million American depositary shares, making it the largest US IPO for an self-driving tech business this year, and about USD153.4 million from the private placement of ordinary shares.

It intends to use the proceeds for the commercialization and market expansion of self-driving services, ongoing technology development, and potential strategic investments and acquisitions to enhance the firm's capabilities and ecosystem, according to the firm’s IPO prospectus.

“Our debut on Nasdaq is just the beginning of the profound ways in which autonomous driving technology will change the world,” said Luo Tiancheng, director, co-founder, and chief technology officer. “The journey to revolutionize mobility is akin to climbing Mount Everest, a path that demands perseverance, patience, and a commitment to a long-term vision.”

Pony.ai believes artificial intelligence will redefine the driving experience by providing unprecedented levels of safety, efficiency, and convenience, according to Luo.

Established in 2016, Pony.ai develops technological solutions and services in the areas of robotaxis, robotrucks, and technology licensing. It operates 250 robotaxis and more than 190 self-driving trucks, clocking up nearly 40 million kilometers of autonomous road testing mileage, including almost four million km of fully driverless operations.

Pony.ai has allied with major automakers, including Toyota Motor, BAIC Motor, GAC Group, FAW Group, SAIC Motor, and Sany Heavy Industry, as well as ride-hailing and logistics platforms such as QIC, Alipay, Didi Global, Jin Jiang Taxi, Sinotrans, and Singapore’s ComfortDelGro.

Pony.ai raised over USD1.3 billion in seven fundraisers before its IPO. Investors include Toyota, FAW, HongShan Capital Group, Wuyuan Capital, IDG Capital, and China Merchants Capital, with the Japanese auto giant holding a 13.4 percent stake and HongShan 10.2 percent. Pony.ai's Chief Executive Peng Jun owns 19.1 percent and Luo 6.7 percent.

The company’s net loss narrowed 26 percent to USD51.3 million in the six months ended June 30 from a year earlier, while revenue more than doubled to USD24.7 million.

Editor: Martin Kadiev