Image Credits: Bloomberg

Shares of Horizon Robotics Inc. surged 28% during their trading debut in Hong Kong on Thursday, marking a positive turn for initial public offerings (IPOs) in the city. The stock opened at HK$5.12 ($0.66), up from its issue price of HK$3.99. The $696 million IPO for the Chinese company, which develops software and hardware for autonomous driving systems, saw strong demand, pricing at the top of its marketed range. Investors like Baillie Gifford & Co. and Norway’s sovereign wealth fund were among the notable participants. The stock had already risen as much as 31% in gray market trading on Wednesday.

This successful debut is expected to further lift confidence in Hong Kong’s IPO market, following a 15% jump in shares of China Resources Beverage Holdings Co. on Wednesday. So far this year, IPO proceeds in Hong Kong have reached $8.7 billion, surpassing the total for all of 2023, according to Bloomberg data.

Founded in 2015 by Kai Yu, a former Baidu AI scientist, Horizon Robotics plans to use its IPO funds for research and development, strategic investments in joint ventures, and marketing and sales initiatives.

This listing is part of the busiest IPO week in Asia in over two years, with around 20 companies expected to raise more than $8 billion. The year’s IPO proceeds in Hong Kong were significantly boosted by Chinese appliance maker Midea Group Co., which raised $4.6 billion in September, marking the city’s largest listing in over three years.

Chinese tech giants Alibaba Group and Baidu were among the four cornerstone investors, collectively subscribing to approximately $220 million in Horizon Robotics’ stock.

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