Chinese Robotaxi Firm Momenta Prices Hong Kong IPO at Top End, Targets $751 Million Raise

Momenta sets price at top end of IPO, raising ~$751 mln Momenta is going to raise ~$751 million in its Hong Kong initial public offering, selling shares at the higher end of its target range and giving it the biggest tech debut in the city this year. The autonomous driving tech developer will price shares at HK$295.60 a share, marketing about 19.9 million shares at that rate, according to a filing with the city’s bourse. Trading should start in the coming days, in another significant moment in the revival of the Hong Kong Stock Exchange as a destination for high-profile tech debuts.

Momenta was founded in 2016 and focuses on building autonomous driving software for everything from driver assist functions in road cars to fully autonomous robotaxis.

It licenses AI-powered driving software to automakers, rather than building and selling cars itself, as part of the growing smart mobility sector. Momenta counts a list of major automakers including Mercedes-Benz, Toyota, General Motors, China’s BYD, SAIC and Geely among its partners. While the company’s tech is being integrated into production cars, it is also working on expanding its robotaxi business in China. The IPO price highlights confidence in autonomous driving tech amid fiercer competition.

AI’s appeal for autonomous driving and self-driving tech companies has soared amid rapid advances in machine learning, computing, and sensor hardware making self-driving vehicles increasingly viable.

Auto manufacturers and financiers are snapping up stakes in software developers pushing robotic driving tech forward. Momenta has also carved out a different approach by working with multiple auto manufacturers, unlike some competitors who have been focused on building a ride-hailing business as their primary model. That diversified approach has allowed Momenta to amass huge amounts of driving data from vehicles with varying brands while collecting fees from car makers and charging ride users.

It also indicates an increasing appetite for tech IPOs. This is a welcome trend after a prolonged drought of listing activity, driven by improving sentiment towards artificial intelligence. Proceeds to boost tech, expand business Momenta intends to use IPO proceeds to finance the research and development and expansion of its intelligent driving platform, development and commercialization of its robotaxi service and expansion in international markets.

Significant investments will be needed for AI, simulation software, supercomputers, and actual-world vehicle testing to develop its systems.

Fierce competition persists in the space as numerous rivals-including Alphabet-owned Waymo, China’s Baidu’s Apollo, Pony.ai and WeRide-compete in building out self-driving transportation. Carmakers, meanwhile, continue to expand offerings of increasingly smart advanced driver-assist systems. Investing in Momenta’s shares gives investors exposure to the sector at the junction of AI and smart mobility, though both technology and regulatory hurdles remain. It shows there’s appetite for this high-tech niche and reflects the growing appetite for Hong Kong as an IPO venue.