Momenta gains in Hong Kong debut after $751mn IPO

Momenta shares rose 3% at the open in Hong Kong on Wednesday, giving the Chinese autonomous-driving company a positive start to public trading after a HK$5.89 billion, or $751 million, initial public offering. The Suzhou-based company priced the deal at HK$295.60 a share, according to its prospectus, and CNBC reported the stock was recently trading at HK$304.

The listing adds another artificial intelligence and mobility name to Hong Kong’s equity market during a busy week for technology flotations. Apple supplier Luxshare and semiconductor foundry Nexchip are also making market debuts in the city this week, reinforcing investor attention on Hong Kong’s role as a venue for Chinese technology fundraising.

Use of proceeds

Momenta said in its prospectus that it intends to spend 60% of net proceeds over the next five years on improving its core technology. That includes proprietary algorithms, an automation toolchain and Momenta Mainline, its platform for driving automation.

The company said another 20% of proceeds will go toward speeding commercialization and scaled development of robotaxi-related solutions. The remaining funds are earmarked for strengthening products for mass-produced vehicles, supporting next-generation product development and general working capital.

In an initial public offering, a company sells shares to public-market investors and receives proceeds that can be deployed for the purposes disclosed in its listing documents. Cornerstone investors, a common feature of Hong Kong IPOs, agree to take shares in the offering and can help anchor demand before trading begins.

Software focus and partnerships

Founded in 2016, Momenta is led by Chief Executive Officer Cao Xudong, a former researcher at Microsoft Research Asia. The company develops autonomous-driving software, including emergency assistance, combined driver-assistance systems and highly automated driving functions.

Momenta has launched commercial robotaxi services in Shanghai and has sought to extend its international reach through partnerships with automakers including Audi, Honda and Mercedes-Benz AG. CNBC previously reported that Momenta reached an agreement with Uber to launch robotaxi services in Europe.

The company also signed a strategic partnership with Grab in December, according to Momenta, aimed at bringing advanced autonomous-driving technologies to urban mobility markets in the region. Momenta said it is developing robotaxi technology and working toward a commercial fleet launch.

Momenta reported revenue of 2.41 billion yuan in 2025, up from 1.32 billion yuan in 2024, according to its prospectus. The document did not frame those figures as a guarantee of future performance.

Backers and market context

China International Capital Corporation and Deutsche Bank acted as joint sponsors for the Hong Kong listing. Momenta’s cornerstone investors included GIC, Fidelity International and BlackRock, as well as strategic partner Mercedes-Benz, according to the prospectus.

Louis Lau, head of the Hong Kong capital markets group at KPMG China, said the firm was optimistic on Hong Kong’s IPO outlook because of active issuance and a strong pipeline. Lau said successful listings of AI-related companies had strengthened Hong Kong’s position among global capital-raising centres for the sector.

This story draws on original reporting from CNBC.