Growing consumer comfort with autonomous driving as the technology improves is fueling a surge in related IPOs, as companies rush to seize on the positive momentum. One of those, Horizon Robotics (9660.HK) has become the latest to join the wave with a major new Hong Kong listing, delivering an enticing story that has excited investors with its strong revenue growth and impressive margins.
The company, which says it aims to “empower passenger vehicles with advanced smart driving solutions,” made its trading debut on the Hong Kong Stock Exchange last Thursday, raising a sizable HK$5.41 billion ($696 million), valuing it at HK$53.4 billion. Its shares opened 28% higher from their IPO price of HK$3.99 at HK$5.12 on their first trading day and closed at HK$4.10 at the end of the day.
With nearly a decade of experience in the young but fast-moving autonomous driving sector, Horizon boasts an A-list of investors that includes Hillhouse Capital and 5Y Capital. It gained a major vote of confidence from the investment community late last year when Volkswagen agreed to pump a combined 2.4 billion euros ($2.6 billion) into both Horizon and also CARIZON, a new joint venture between the pair.