SYDNEY – Horizon Robotics, Chinese mainland's leading autonomous driving technology company, recently announced plans for an initial public offering (IPO) in Hong Kong S.A.R., which is expected to raise up to US$696 million. The move marks a significant step forward for the company in the capital markets and reflects Hong Kong's continued attractiveness as an international financial centre.
According to the IPO documents filed by Horizon Robotics, the company will issue 1.36 billion shares at a price of HK$3.73 to HK$3.99 (about US$0.51) per share. If successful, Horizon Robotics will be the largest IPO in Hong Kong in 2024, surpassing China Resources Beverage, which is preparing for an IPO, and the company plans to raise up to $650 million.
According to the filing, Horizon Robotics has attracted the attention of several cornerstone investors. Among them, Alibaba Software China and Baidu jointly subscribed for $219.8 million worth of shares as major investors, and the two companies participated in the subscription for $50 million, with Volkswagen also holding a small stake in the company. This fully demonstrates the market's confidence and expectations for the future development of Horizon Robotics.
According to company filings, Horizon Robotics plans to determine the final price for the IPO on Oct. 21 and begin trading on the Hong Kong Stock Exchange on Oct. 24. Horizon Robotics said it plans to use 70% of the funds raised from the IPO for R&D spending and 10% for sales and marketing activities over the next five years. This strategy will help the company further strengthen its leadership position in autonomous driving technology and drive future business growth.
With the boom in autonomous driving technology, Horizon Robotics' IPO reflects investors' keen interest in the field and injects new vitality into Hong Kong's capital market. Expectations for this IPO continue to rise, and it is expected that Horizon Robotics will be able to set sail in the global autonomous driving industry and achieve greater commercial success.