Horizon Robotics drives home record IPO in Hong Kong

October 22, 2024 (MLN): Chinese autonomous driving firm Horizon Robotics has priced its shares at the top of its range to raise HK$5.4 billion ($696 million) according to a term sheet seen by Reuters, making it the biggest Hong Kong initial public offering this year, as Reuters reported. 

The company sold 1.355 billion shares in a price range of HK$3.73 to HK$3.99 each, according to the company's filings.

Horizon Robotics declined to comment on its IPO pricing.

The retail portion of the deal was covered 34 times, according to a source with direct knowledge, indicating renewed enthusiasm from retail investors for Hong Kong IPOs.

At the set price, the IPO is the largest in Hong Kong in 2024, eclipsing China Resources Beverage which on Friday finalised its $650 million new share sale. It is also the largest tech sector IPO in Hong Kong since SenseTime Group raised $740 million in late 2021.

The two deals have given dealmakers renewed hope Hong Kong's IPO market could be showing signs of activity after a nearly two-year slump.

Before Horizon Robotics and China Resources Beverage, IPO volumes had hit a two-decade low, according to Dealogic data. The two IPOs beginning book building last week meant Hong Kong recorded its busiest week for IPO activity in two years.

The top 10 largest orders among institutional investors to buy stock would be allocated about 75% of that tranche of the deal, the source added. The source could not be named discussing confidential information.

Four cornerstone investors, led by Alisoft China and Baidu, subscribed for $219.8 million worth of Horizon Robotics shares in the IPO, according to regulatory filings.

Goldman Sachs, Morgan Stanley and China Securities International led the deal, the filings showed.

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