Horizon Robotics' Successful IPO: A Boon for Autonomous Driving and Hong Kong's IPO Scene

Horizon Robotics, a Chinese provider of software and hardware for autonomous driving systems, has priced its shares at the top of its range, raising $696 million in its Hong Kong initial public offering (IPO). The company, backed by Intel Corp., sold 1.36 billion shares at HK$3.99 each, according to two sources with direct knowledge of the matter.

The strong investor demand and positive market sentiment played a significant role in Horizon Robotics' decision to price its shares at the top of the range. The recent rally in Chinese shares and the positive outlook for autonomous driving companies contributed to the robust interest in the IPO. The timing of the IPO, just after the Chinese National Day holiday, also seemed to have a positive impact on the pricing decision.

Cornerstone investors, including units of Alibaba Group Holding Ltd. and Baidu Inc., as well as a fund tied to the government of the Chinese city of Ningbo, committed to buying about $220 million of Horizon Robotics stock in the offering. Their involvement further boosted the company's credibility and attracted more investors.

Horizon Robotics' IPO valuation compares favorably with other autonomous driving companies like Pony.ai and Black Sesame International. The varying levels of investor interest in autonomous driving IPOs in Hong Kong can be attributed to factors such as the companies' technological advancements, market potential, and the overall economic climate.

The successful IPO of Horizon Robotics is expected to have a positive impact on the broader market sentiment for autonomous driving companies and Hong Kong's IPO scene. It signals a renewed investor appetite for Chinese tech companies and sets the stage for more IPOs in the region.

In conclusion, Horizon Robotics' IPO pricing at the top of its range reflects the strong investor demand and positive market sentiment for autonomous driving companies. The involvement of cornerstone investors and the positive outlook for the sector contributed to the successful IPO. The performance of Horizon Robotics' IPO is likely to have a positive impact on the broader market sentiment for autonomous driving companies and Hong Kong's IPO scene.