- Briefing Your roundup of Asian tech and startup news that matter
Roehl Niño Bautista · · 1 min readPony.ai shelves US listing amid fears of China’s tech crackdown
“Autonomous driving startup Pony.ai has put on hold plans to go public in New York through a merger with a blank-check 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,” Reuters reported, citing sources.
Details:
- Pony.ai was concerned about the possible pushback from the Chinese government if it made its US stock market debut, even if it proceeded to list via a special purpose acquisition company instead of a standard initial public offering, the sources said.
- The startup will reportedly raise money privately instead, although the sources said the firm is still hoping that China allows its planned listing to go through.
Dive deeper
- Pony.ai’s move follows China’s banning of Didi from app stores days after the ride-hailing giant raised US$4.4 billion in its US public offering. The clampdown dealt a US$14 billion blow to Didi in July, while Beijing mulled further sanctions such as delistings and fines.
- China’s actions against Didi are considered to be part of an ongoing crackdown on the country’s tech giants and have sent ripples through local firms harboring hopes for a US listing.
Editing by Miguel Cordon and Arpit Nayak
(And yes, we’re serious about ethics and transparency. More information here.)
Stay updated on the go with our mobile app.
Get latest insights with smoother, more personalized experience through TIA mobile app.
