CHINESE autonomous driving firm Horizon Robotics is aiming to raise up to US$696 million in a Hong Kong initial public offering (IPO), as the city’s listings market shows signs of renewed activity after a nearly two-year slump.
The company will sell 1.36 billion shares in a price range of HK$3.73 to HK$3.99 each, according to the company’s filings.
If successful, the IPO will be the largest in Hong Kong in 2024, eclipsing China Resources Beverage which began book-building on Tuesday (Oct 15) for its up to US$650 million listing.
Before Horizon Robotics and China Resources Beverage, Hong Kong’s IPO volumes had fallen to multi-year lows as Chinese regulators hold back approvals from mainland companies looking to raise capital offshore.
Cornerstone investors have subscribed for US$219.8 million of Horizon Robotics stock led by Alisoft China and Baidu, which have bid for US$50 million each, the filings showed.
Horizon Robotics manufactures advanced driver assistance systems and autonomous driving solutions for passenger vehicles in China. Volkswagen has a small stake in the company.
Horizon Robotics will set the final price for the IPO on Oct 21 and the shares will start trading on the Hong Kong Stock Exchange on Oct 24, the filings showed.
The company said that it would use 70 per cent of the proceeds raised in the IPO on research and development spending over the next five years, while a further 10 per cent would be spent on sales and marketing. REUTERS
