Hong Kong’s first IPO of the year makes weak trading debut as RoboSense Technology shares drop in a tepid market

Loss-making RoboSense Technology, a Chinese maker of sensors for self-driving cars, raised US$113.6 million

PwC predicts 80 companies will list in the city this year, with fundraising set to exceed US$12.8 billion, more than double last year’s US$5.9 billion

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Qiu Chunxin, RoboSense’s chairman and Qiu Chunchao, its president, struck the ceremonial gong at the Hong Kong stock exchange on January. Photo: handout

Published: 1:45pm, 5 Jan 2024Updated: 5:25pm, 5 Jan 2024

Shares of RoboSense Technology, a Chinese maker of sensors for self-driving cars, fell on their Hong Kong trading debut on Friday after the company made the city’s first initial public offering (IPO) of the year.

The Shenzhen-based company’s stock lost as much as 3.5 per cent before closing at HK$43 per share, unchanged from its offering price. That gives the company, trading under the 2498 code, a market capitalisation of HK$19.3 billion (US$2.5 billion), according to Stock Exchange data. The Hang Seng Index fell 0.7 per cent to cap the worst start to the year since 2005.

Qiu Chunxin, RoboSense’s chairman and Qiu Chunchao, its president, struck the ceremonial gong at the Hong Kong stock exchange at 9.30am with mallets wrapped in auspicious red cloth to mark commencement of trading.

“The listing at HKEX is a milestone for RoboSense,” Qiu Chunxin said. “It means our company has now entered the international capital markets.”

RoboSense. Photo: Twitter@RoboSenseLiDAR

The listing comes amid hopes that prospects for the Hong Kong stock market have turned a corner after a gloomy year. PwC predicts 80 companies will list in the city this year, with fundraising set to exceed HK$100 billion. In 2023, fundraising fell 56 per cent from a year ago, with 73 companies mopping up HK$46.3 billion.

Gross proceeds from the RoboSense IPO aggregated HK$985 million, and out of the net proceeds of HK$887 million, the company plans to use 45 per cent on research and development, 20 per cent on enhancing its manufacturing, testing and verification capabilities, 20 per cent on sales and marketing efforts, and the rest on partnerships and for working capital needs.