Horizon Robotics, a Chinese rival to Nvidia, eyes $696 million in Hong Kong’s biggest IPO of 2024

Chinese autonomous driving startup Horizon Robotics is gearing up to raise up to $696 million through an initial public offering (IPO) in Hong Kong. After nearly two years of quiet on the city’s listings scene, activity is picking up again, with Horizon Robotics leading the charge.

The company plans to sell 1.36 billion shares at prices ranging from HK$3.73 to HK$3.99 ($0.51) each, Reuters reported, citing the company’s filings. If all goes to plan, this will be Hong Kong’s biggest IPO of 2024, outpacing the $650 million offering from China Resources Beverage, which kicked off its book-building process earlier this week.

IPO activity in Hong Kong had slowed significantly, with mainland Chinese companies facing regulatory hurdles that limited their offshore capital-raising efforts. But Horizon Robotics and China Resources Beverage signal a potential resurgence.

Major investors are showing interest in Horizon’s IPO, with $219.8 million worth of shares already committed. Leading the pack are Alisoft China and Baidu, each pledging $50 million.

Horizon Robotics, seen as a competitor to Nvidia, specializes in AI chips for robots and autonomous vehicles. The company’s success is also seen as a key step for China as it works to reduce dependence on Western technology, particularly advanced chipsets from the U.S. and Europe.

Horizon Robotics provides tech for advanced driver assistance systems and autonomous driving in Chinese passenger vehicles. The company plans to finalize the IPO price on October 21, with shares set to begin trading on the Hong Kong Stock Exchange on October 24.

Of the funds raised, Horizon will allocate 70% toward research and development over the next five years, with 10% going toward sales and marketing efforts.

Back in 2022, we covered Horizon Robotics when Cariad, a software unit of Volkswagen, acquired a 60% stake in the company for $2 billion. The move was part of Volkswagen’s strategy to tackle software challenges and deepen its presence in the Chinese market.

Founded in 2015 by Dr. Yu Kai, a former director at Baidu’s Deep Learning Research Institute, Horizon Robotics has raised over $1.3 billion to date. With two of the world’s leading semiconductor companies as major investors, the 7-year-old startup is making waves in the tech world.