Shares of Chinese autonomous driving firm Momenta rose 3% on its debut in Hong Kong at Wednesday's market open.
In a HK$5.89 billion ($751 million) initial public offering, Momenta priced its shares at HK $295.60, the company announced via its prospectus. It was recently trading at HK$304.
The Suzhou-based self-driving company plans to use 60% of the net proceeds over the next five years to enhance its core technology, including its proprietary algorithms, automation toolchain, and its platform Momenta Mainline to remain competitive in the driving automation industry, according to its prospectus.
It plans to allocate 20% of the proceeds to accelerate the commercialization and scaled development of its solutions for robotaxi services, the company said.
The rest of the proceeds will be earmarked for strengthening solutions for mass-produced vehicles, supporting the development of next-generation products, and for working capital purposes.
Founded in 2016 and led by Chief Executive Officer Cao Xudong, a former researcher at Microsoft Research Asia, the company develops autonomous driving software such as emergency assistance, combined driver assistance and highly automated driving.Â
Momenta has already launched commercial robotaxi services in Shanghai and is expanding its global footprint through strategic partnerships, such as with carmakers Audi, Honda, and Mercedes-Benz AG. CNBC previously reported on the company's agreement with Uber to launch robotaxi services in Europe.
Momenta and Grab signed a strategic partnership in December in a joint effort to bring advanced autonomous driving technologies to the region's complex urban mobility markets, while the company is rapidly developing its robotaxi technology and moving toward a commercial launch of its robotaxi fleetÂ
The company recorded 2.41 billion yuan in revenue in 2025, from 1.32 billion yuan in 2024, according to its prospectus. Â
China International Capital Corporation and Deutsche Bank served as the joint sponsors for the Hong Kong debut.
Institutional backers including GIC, Fidelity International, and BlackRock, alongside strategic partner Mercedes-Benz, anchored the IPO as cornerstone investors, according to its prospectus.Â
Momenta is part of a wave of companies making their debut on the Hong Kong exchange this week, alongside Apple supplier Luxshare and semiconductor foundry Nexchip, adding momentum to the local tech IPO market.Â
"We are optimistic about the outlook for the Hong Kong IPO market, driven by thriving IPO activities and a robust pipeline," said Louis Lau, head of the Hong Kong capital markets group at KPMG China. Lau noted that successful listings of AI-related companies have reinforced Hong Kong's position as one of the top global capital-raising hubs for the sector.
