Shares of Horizon Robotics, a leading Chinese autonomous-driving technology firm, surged during their debut on the Hong Kong Stock Exchange, marking the second-largest initial public offering (IPO) in the city this year. Listed under the code 9660, the company’s shares opened at HK$5.12, a 28% rise from their IPO price of HK$3.99. Chairman and CEO Yu Kai celebrated the occasion by striking the ceremonial gong, signifying the start of trading. As of the latest figures, the shares were trading at HK$4.22.
The Beijing-based firm raised HK$5.4 billion (US$696 million) through the IPO, after pricing its shares at the top end of the marketed range. This IPO is the second-largest in Hong Kong this year, trailing only behind Midea Group’s US$4.6 billion deal last month. Horizon Robotics, which was founded in 2015 by Yu Kai, a former Baidu executive, has positioned itself as a major competitor to Nvidia in China’s autonomous driving sector.
“The completion of our IPO in Hong Kong is a significant milestone in our journey to expand globally,” said Yu during the event. He emphasized that the funds raised will be used to increase investments in research and development and continue the company’s commitment to innovation, aimed at enhancing road safety and improving user experience.
Horizon’s IPO was highly oversubscribed, with 33.8 times the shares allocated to Hong Kong retail investors and 13.8 times by global funds. This demand may lead the company to exercise an option to sell an additional 203 million shares, potentially pushing the total proceeds to US$800 million.
Notable cornerstone investors purchased US$220 million worth of shares, including Alibaba Group and Baidu, along with a fund tied to Ningbo’s city government. Scottish fund manager Baillie Gifford, already a major investor in Horizon Robotics, bought US$260 million in shares, representing 37% of the IPO’s size.
Most of the IPO proceeds will be allocated toward research and development over the next five years, with a portion going to joint ventures like the Carizon unit with Volkswagen Group. Horizon Robotics’ strong IPO performance follows a wave of new listings in Hong Kong, boosted by renewed investor confidence after Beijing unveiled significant stimulus measures to support China’s stock and property markets. The Hang Seng Index has risen over 20% year to date, and further IPOs from companies like SF Express, JD Industrials, and Mao Geping are expected to continue the momentum.
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