(Yicai) Nov. 28 -- Pony.ai's shares fell on its trading debut in New York despite the Chinese autonomous driving startup seeing an initial surge.

After soaring by more than 19 percent at one point, Pony.ai [NASDAQ: PONY] closed 7.8 percent lower at USD12 a share yesterday, giving it a market capitalization of USD4.2 billion.

Guangzhou-based Pony.ai issued 23 million American depositary shares at USD13 apiece, raising up to USD299 million and making it the largest initial public offering in the US for the autonomous driving sector this year. In addition, through a concurrent private placement of common shares worth about USD153.4 million, total proceeds will likely reach around USD452 million.

The proceeds will be used for the commercialization and market expansion of Pony.ai's self-driving services, ongoing technology development, and potential strategic investments and acquisitions to enhance the firm's capabilities and ecosystem, according to its prospectus.

"Our debut on Nasdaq is just the beginning of the profound ways in which autonomous driving technology will change the world," said Lou Tiancheng, director, co-founder, and chief technology officer of Pony.ai. "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 Lou.

Established in 2016, Pony.ai offers technological solutions and services related to robotaxis, robotrucks, and technology licensing. It operates 250 robotaxis and more than 190 self-driving trucks, with nearly 40 million kilometers of autonomous driving testing, including almost four million km of fully automated driving.

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 several ride-hailing and logistics platforms, including QIC, Alipay, Didi Global, Jin Jiang Taxi, Singapore's ComfortDelGro, and Sinotrans.

Pony.ai has 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 CEO Peng Jun owns 19.1 percent and Lou 6.7 percent.

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

Editor: Martin Kadiev