Pony.ai and WeRide Eye Hong Kong IPOs

Autonomous driving technology firms Pony.ai and WeRide have both received the green light from China’s securities regulator for secondary listings on the Hong Kong Stock Exchange (HKEX). This move underscores their ambitions to secure additional capital and fuel ongoing global expansion efforts in a competitive and increasingly demanding market.

The China Securities Regulatory Commission (CSRC) made the announcement on Tuesday, confirming that both companies have submitted the necessary filings to issue and list shares in Hong Kong. This regulatory approval is a pivotal step, as Chinese companies seeking to list on foreign exchanges are mandated to obtain prior consent from the CSRC, thereby granting the regulator ultimate oversight over overseas IPOs.

For both Pony.ai and WeRide, already listed in the United States, the proposed Hong Kong listings involve the issuance of approximately 102 million new shares each, signaling a significant capital raise for both entities.

According to sources, WeRide has reportedly enlisted the expertise of Morgan Stanley and China International Capital Corporation to manage the listing process. Neither WeRide nor Pony.ai offered immediate comments on their IPO strategies following inquiries.

As early as July, Pony.ai CEO James Peng indicated that the company was actively considering a Hong Kong IPO. Peng highlighted Hong Kong’s strategic “close proximity” to the company’s core Chinese market, which he believes would be a compelling factor for potential investors. The dual listing offers access to a deeper pool of Asian investors and a hedge against regulatory uncertainties in other markets.

Guangzhou-based Pony.ai and WeRide are part of a growing cohort of Chinese companies pursuing secondary listings in Hong Kong, contributing to a noteworthy resurgence in the city’s IPO activity after a period of relative slowdown. The trend signifies a broader strategy among Chinese tech firms to diversify their funding sources and potentially mitigate risks associated with reliance on a single market.

Simultaneous to their dual-listing initiatives, both companies are expanding their global footprint, extending their presence into regions such as the Middle East, Europe, and select Asian countries, including Singapore. While these expansions are underway, full regulatory approvals for operating robotaxi services in many of these new markets remain pending. This expansion into new geographies represents a calculated bet on the future of autonomous driving, though regulatory hurdles and public acceptance remain critical variables.

In the United States, both companies have forged strategic partnerships with Uber, with the long-term objective of integrating their robotaxis into Uber’s ride-hailing platform, subject to regulatory approval. Domestically, in China, Pony.ai and WeRide have already initiated fully autonomous robotaxi operations in major urban centers, offering ride-hailing services via their respective mobile applications.

However, it is important to note that Pony.ai and WeRide currently operate smaller autonomous vehicle fleets compared to established industry leaders such as Baidu’s Apollo Go within China and Alphabet’s Waymo in the U.S. While the technology is advancing rapidly, scaling up robotaxi operations presents significant logistical and financial challenges.

Pony.ai launched its IPO in November with shares priced at $13 apiece, experiencing a subsequent increase of over 60%. WeRide debuted on the Nasdaq at $15.50 a share in October 2024, but its stock has since declined by over 30%. This performance differential highlights the volatile nature of the autonomous driving market and the varying degrees of investor confidence in different ventures.