Horizon Robotics soars 28% in Hong Kong debut as IPOs return in big week for fundraising

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Shares of Beijing-based tech firm changed hands at HK$5.12 when trading began, versus the IPO price of HK$3.99

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Yu Kai, the chairman and chief executive of Horizon Robotics, at the trading debut of the company’s shares on the Hong Kong stock exchange. Photo: Aileen Chuang

Mia CastagnoneandAileen Chuang

Published: 9:38am, 24 Oct 2024Updated: 6:02pm, 24 Oct 2024

Shares of Horizon Robotics, a Chinese autonomous-driving technology firm, rose sharply when they began trading for the first time as the local market for initial public offerings (IPOs) continues its rise from the ashes.

Listed under the code 9660, the tech company’s shares changed hands at HK$5.12 when trading began, up 28 per cent from its IPO price of HK$3.99. The shares ended the day just 2.8 per cent higher at HK$4.10, aligning with a broad decline in tech stocks in Hong Kong. The Hang Seng Tech Index fell 2.6 per cent on Thursday.

The Beijing-based company raised HK$5.4 billion (US$696 million) after pricing its shares at the top end of an expected range. The listing is Hong Kong’s second-largest this year after Midea Group’s US$4.6 billion deal last month.

“The completion of our IPO in Hong Kong marks a significant step in our journey into the global market,” Chairman and CEO Yu Kai said before the ceremonial gong ringing. “We will increase our investments in research and continue our commitment to innovations to create value for our users, and make travelling safer and better for everyone.”

Horizon’s IPO size surpassed this week’s other deal by China Resources Beverage in one of the busiest weeks for deal investment bankers this year. Photo: Reuters

Horizon was founded in 2015 by Yu, who previously worked at Baidu where he led projects in deep learning and autonomous driving.

Horizon’s IPO attracted 33.8 times the number of shares allocated to retail investors in Hong Kong and 13.8 times by global funds. The oversubscription could encourage the firm to exercise an option to sell an additional 203 million shares, which would swell the IPO’s proceeds to US$800 million.