Horizon Robotics, a prominent player in the realm of autonomous driving technology, has announced its intention to secure up to $696 million through an initial public offering (IPO) in Hong Kong.
This move comes as the city’s capital markets begin to exhibit signs of revitalization following a prolonged period of inactivity lasting nearly two years.
According to the company’s regulatory filings, Horizon Robotics plans to offer 1.36 billion shares, with pricing set between HK$3.73 and HK$3.99 ($0.51) each.
Should this IPO succeed, it will represent the largest public listing in Hong Kong for 2024, surpassing the anticipated $650 million IPO from China Resources Beverage, which commenced its book-building process earlier this week.
Prior to these developments, the Hong Kong IPO market had experienced a significant downturn, reaching multi-year lows as Chinese regulators maintained a tight grip on approvals for mainland companies seeking to raise funds outside of China.
In a positive sign for Horizon Robotics, cornerstone investors have already committed to purchasing $219.8 million worth of shares.
Notable contributions include bids of $50 million each from Alisoft China and Baidu, underscoring strong interest from major players in the technology sector.
Specializing in the production of advanced driver assistance systems and autonomous driving solutions, Horizon Robotics caters to the growing demand for innovative passenger vehicle technology within China.
The company also counts Volkswagen among its stakeholders.
The IPO process is set to finalize its share pricing on October 21, with trading expected to commence on the Hong Kong Stock Exchange on October 24.
In its filings, Horizon Robotics detailed plans to allocate 70% of the funds raised toward research and development over the next five years, while an additional 10% will be directed to sales and marketing initiatives.
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