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Chinese self-driving firm Momenta eyes US$750m in Hong Kong IPO

Second ‘red-chip’ approved by Beijing for a Hong Kong listing this year aims to invest proceeds in research and development, robotaxi push

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Momenta's technology has been used cars from Mercedes-Benz, BMW, Toyota and Honda. Photo: Reuters
Themis Qi
Chinese self-driving technology start-up Momenta kicked off bookbuilding on Monday for a HK$5.89 billion (US$751 million) share listing on the Hong Kong stock exchange, testing market sentiment amid a sales slump in China’s car industry.

The company is offering nearly 19.94 million shares at HK$295.60 per share. With 20 shares as the minimum board lot, the minimum investment is HK$5,971.62.

Sponsored by CICC and Deutsche Bank, the bookbuilding closes on Friday, ahead of a scheduled trading debut on July 8.

The company, based in Suzhou in eastern China’s Jiangsu province, was the second “red-chip” firm this year to receive Beijing’s regulatory approval to list in Hong Kong under an entity incorporated offshore.
According to its prospectus, Momenta intended to allocate 60 per cent of the listing proceeds to research and development and 20 per cent to scaling its robotaxi commercialisation efforts.

Cornerstone investors for the offering include Singapore’s GIC, Fidelity International, BlackRock and its long-term partner Mercedes-Benz, drawing a combined investment of nearly US$380 million.

Established in 2016, the company develops autonomous driving technologies and provides services as a third-party supplier. As of September, its solutions had been deployed across more than 160 mass-produced vehicle models, including cars from Mercedes-Benz, BMW, Toyota and Honda.

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