 "Horizon Robotics targets $696 mn Hong Kong IPO, city's largest in 2024")
Chinese autonomous driving firm Horizon Robotics is aiming to raise up to $696 million in a Hong Kong initial public offering, 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 ($0.51) 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 for its up to $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 $219.8 million of Horizon Robotics stock led by Alisoft China and Baidu, which have bid for $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.
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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 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.