Horizon Robotics, a Chinese autonomous driving firm, plans to raise up to $696 million in its upcoming Hong Kong initial public offering (IPO), marking the city’s largest listing of 2024. The company aims to sell 1.36 billion shares, priced between HK$3.73 and HK$3.99 ($0.51) each, according to its filings. This IPO surpasses the $650 million target set by China Resources Beverage, which recently began its own listing process, reflecting a rebound in Hong Kong’s IPO market following a nearly two-year downturn.
Hong Kong’s IPO volumes had previously reached multi-year lows, largely due to regulatory constraints on mainland companies raising offshore capital. Horizon Robotics and China Resources Beverage signal a potential revival for the city’s listings. Among those participating in Horizon’s IPO are cornerstone investors like Alisoft China and Baidu, each committing $50 million, contributing to a total of $219.8 million in early subscriptions.
Horizon Robotics specializes in manufacturing advanced driver assistance systems and autonomous driving solutions for passenger vehicles in China. Volkswagen holds a minority stake in the company. The final IPO price is set to be confirmed on Oct. 21, with trading on the Hong Kong Stock Exchange starting on Oct. 24. The company plans to allocate 70% of the proceeds to research and development over the next five years, with another 10% going towards sales and marketing.
