Pony AI (PONY-W), the autonomous driving technology company, saw its shares plummet 12.01% in its Hong Kong Stock Exchange debut on Thursday. The dramatic drop highlights a lukewarm reception from investors despite the company's recent successful fundraising efforts.

The stock was set to open at HK$124 per share, significantly lower than its initial public offering (IPO) price of HK$139. This gap between the opening price and the IPO price suggests that market sentiment towards Pony AI is less optimistic than initially anticipated, leading to the sharp decline in share value during early trading.

Pony AI had raised HK$6.45 billion (approximately US$825 million) in net proceeds from its IPO, issuing 48.3 million shares. The Hong Kong public offer was 15.88 times oversubscribed, while the international offering was 7.72 times subscribed. Despite this apparent interest during the subscription period, the market's reaction on the first day of trading indicates a disconnect between initial demand and current investor sentiment.

The underwhelming debut of Pony AI may reflect broader concerns about the autonomous driving sector's near-term profitability and the general economic headwinds facing tech companies. Investors appear to be taking a cautious approach, possibly due to the long road to commercialization for autonomous driving technologies and the significant capital requirements involved in research and development.