Horizon Robotics enters the Hong Kong market with an ambitious IPO

The Chinese company Horizon Robotics, known for its innovative software and hardware solutions in the field of autonomous driving, is planning a significant IPO in Hong Kong. The company aims to raise up to 5.4 billion Hong Kong dollars (696 million US dollars), making it one of the largest listings in the city this year. Supported by Intel Corp., Horizon Robotics is offering 1.36 billion shares at prices between 3.73 and 3.99 Hong Kong dollars. The order acceptance begins on Wednesday, with trading set to commence on October 24. Particularly noteworthy are the so-called anchor investors, who commit to purchasing shares worth approximately 220 million US dollars and holding them for at least six months. Notable investors include stakes from Alibaba Group and Baidu, as well as a fund supported by the Ningbo city government. This move comes at a time when many investors have become cautious due to China's economic challenges. Nevertheless, Horizon Robotics' IPO signals an optimistic sentiment and aligns with recent Chinese issuances aiming to leverage the upward trend in Hong Kong. Horizon Robotics, led by former Baidu scientist Kai Yu, who played a key role in developing Baidu's autonomous driving technologies, was founded in 2015. Other Chinese companies in the autonomous driving sector, such as Pony.ai and Shanghai Westwell Lab, are also preparing for their IPOs, although the market is not without issues. For example, Black Sesame International's share price fell at its debut in August and remains about 8% below the issue price. Goldman Sachs, Morgan Stanley, and China Securities International are acting as sponsors for Horizon Robotics' IPO.