Momenta, a Chinese autonomous driving startup backed by Toyota, debuted on the Hong Kong Stock Exchange. After an initial surge, its shares closed near the reference price. The IPO raised at least HKD 5.89 billion and gave the company a valuation of about HKD 70 billion, roughly 50% above its previous funding round. Demand from individual investors far outstripped supply, with orders oversubscribed by as much as 414 times. The deal comes as Hong Kong's financial market experiences a wave of strong IPO activity, with mainland Chinese firms seeking foreign capital to fund international expansion. In the first half of the year, the Hong Kong IPO market set records for fundraising and deal count, with HKD 210 billion raised through 87 listings.
The listing comes amid a wave of strong IPO activity in Hong Kong as mainland Chinese companies pursue foreign capital to fund international expansion. Earlier, Momenta had scrapped plans for a US listing amid U.S.-China tensions and quietly filed for an IPO in Hong Kong in March. At a time when regulators are tightening autopilot-related rules, the market environment created an opening for a Chinese technology group focused on automotive software to access capital in Hong Kong.
On the listing day, founder and CEO Cao Xudong rang the bell to open trading, joining executives from four other companies listing that day. Cao said, "Over the past decade, we have used AI to bring a driver to every home. Our next goal is global expansion and broad acceptance of Chinese technology." Momenta’s leadership is optimistic about growth, noting that overseas expansion and a shift toward robotaxi services could unlock growth of up to 100x in the number of vehicles on the road equipped with Momenta software.
As Chinese regulators tighten autopilot regulations, analysts expect more automakers to rely on Momenta and peers to upgrade smart vehicles. The MIIT recently issued national standards for driver-assistance systems. Citi analysts said this will standardize industry practices and eliminate low-ROI efforts by smaller carmakers, benefiting tech providers like Momenta and Horizon Robotics. Momenta is targeting the next growth stage by building robotaxi fleets through partnerships with Uber, Mercedes-Benz, and SAIC Motor. The company stated, "This model is unique and scalable; deploying it at scale for mass-produced vehicles will generate a stable revenue stream to fuel long-term breakthroughs and growth."
Deutsche Bank estimates that high-level autonomous driving vehicles accounted for up to 47% of total new car sales in May, meaning these cars can autonomously change lanes, steer, and perform other operations based on Navigation on Autopilot. Citi analysts commented that the national standards for driver-assistance systems could standardize industry practices and improve returns for technology providers like Momenta.
Sources: Nikkei, SCMP. By Vu Anh. Source: Nhịp sống thị trường.
