By Scott Murdoch and Donny Kwok
SYDNEY (Reuters) -Shares of Horizon Robotics soared 28.3% in its trading debut on Thursday after the Chinese autonomous vehicle maker raised $696 million in this year’s largest initial public offering (IPO) in Hong Kong.
The company sold 1.355 billion shares at HK$3.99 each, according to the company’s filings.
The stock began trading at HK$5.12 each, while the was down 0.9% early in the session on Thursday. It was the most actively traded stock by turnover in early trade.
Horizon Robotics’ deal eclipsed the one by China Resources Beverage, which last week 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.
Horizon Robotics’ shares surged, following China Resources Beverage gaining 15% on its debut in Hong Kong on Wednesday.
The positive performances will give dealmakers hope the negative sentiment towards Hong Kong IPOs in the past two years as the result of volatile financial markets and globally high interest rates is starting to ease.
New share sale volumes in Hong Kong, ahead of China Resources Beverage and Horizon Robotics, were at the lowest level in two decades, according to Dealogic data.
Retail investors bid for nearly 34 times the amount of stock on offer in Horizon Robotics’ IPO while the institutional portion was 14 times covered, according to the company’s filings.
Horizon Robotics had an implied market capitalisation of $6.7 billion from the IPO, according to its filings.
