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Curiosity in self-driving automobiles has gone up a gear due to Tesla’s latest much-hyped robotaxi occasion. Chinese language autonomous driving agency Horizon Robotics has chosen a great time to boost funds in a Hong Kong itemizing. If it reaches its goal of elevating as much as $696mn, it will be town’s largest preliminary public providing this yr.
The corporate, backed by Intel and Volkswagen, will promote 1.36bn shares. This might make the itemizing greater than China Assets Beverage. Earlier than Horizon’s announcement, this mushy drinks firm had been on observe to carry town’s largest new share sale this yr after it began bookbuilding on Tuesday.
In Hong Kong, having a number of giant listings in shut succession has often meant extra scattered funds from retail traders and fewer demand for firms that aren’t well-known family names. For Horizon, that needs to be much less of a problem because it has already acquired vital curiosity from company traders. Cornerstone traders for the Horizon inventory providing embody the web enterprise software program unit of Alibaba Group and Chinese language web search big Baidu.
There are good causes for the curiosity. Horizon manufactures superior driver help methods and autonomous driving options for passenger automobiles in China. In contrast to some self-driving and software program start-ups which have but to construct a viable product or enterprise mannequin, Horizon has already provided clients together with Volkswagen’s Audi, Continental, BYD, Li Auto and SAIC. Volkswagen has invested in creating know-how to combine autonomous driving-related features on to a single chip together with Horizon since 2022. Proceeds raised within the itemizing shall be used for analysis and improvement in addition to gross sales and advertising.
Autonomous driving know-how, particularly absolutely self-driving automobiles, have been the subject of a lot debate. True, the commercialisation and mass manufacturing of driverless automobiles are prone to be a few years sooner or later. However that doesn’t essentially imply it’s going to take that a lot time to get particular person autonomous driving features — nonetheless requiring driver supervision — into at present’s automobiles as profitable add-ons.
Autonomous driving applied sciences use software program, radars, lidar sensors and cameras to reinforce security and comfort for drivers. For instance, the extent of know-how at present can alert drivers to obstacles, assist keep away from collisions and help in parking and lane centring — all of which carmakers can monetise by premium options.
Hong Kong’s deflated listings market may do with the form of hype that self-driving automobiles are producing. However a profitable Horizon IPO ought to no less than present one other much-needed enhance to shift it out of the sluggish lane.
june.yoon@ft.com
