Horizon Robotics, a prominent Chinese firm specializing in AI chips for autonomous vehicles, is aiming to secure up to HK$5.4 billion (approximately $696 million) through its initial public offering (IPO) in Hong Kong. The company's listing documents reveal that major Chinese corporations like Alibaba Group Holding Ltd. and Baidu Inc. are investing in this IPO, which also has the backing of technology giant Intel Corp.
Should this IPO succeed, it will stand as the largest in Hong Kong for 2024.
For this public offering, Horizon Robotics intends to release 1.36 billion shares, priced within the range of HK$3.73 to HK$3.99 per share. Of these, 135.51 million shares will be allocated to the Hong Kong market, while 1.22 billion shares are designated as International offer shares. Trading of these shares is scheduled to commence on October 24.
The IPO has attracted cornerstone investors including entities from Alibaba and Baidu, alongside a government-related fund from Ningbo, a Chinese city.
According to the filings, cornerstone investors, spearheaded by Alibaba's Alisoft China Holding Limited and Baidu, have committed to purchasing $219.8 million worth of Horizon Robotics shares, each bidding $50 million.
Per Bloomberg's sources, the order book was fully subscribed shortly after the company initiated investor orders on Wednesday.
Founded in 2015 by AI scientist Kai Yu and former colleagues from Baidu, Horizon Robotics has seen significant investment from a number of noteworthy backers. Alongside Intel, investors include Hillhouse Investment, HongShan, Yuri Milner, Sinovation Ventures, and Yunfeng Capital.
Initially, Horizon Robotics planned to launch its IPO in the United States with a goal of raising up to $1 billion. However, this plan shifted in October 2021, leading to the decision for a Hong Kong IPO.
In 2022, the company received a substantial $2.3 billion investment from German automotive leader Volkswagen Group, establishing a joint venture focused on developing proprietary vehicle software for Volkswagen.
