Chinese autonomous-driving start-up Momenta drew massive subscription numbers for its HK$5.89 billion (US$751 million) initial public offering in Hong Kong, even as it competed against five other issuers launching their IPOs at the same time.
The Suzhou-based company’s bookbuilding closed on Friday. Preliminary figures showed that it attracted nearly 210,000 subscription applications, with the public offering subscribed 414 times, according to people familiar with the matter.
Sponsored by China International Capital Corporation and Deutsche Bank, Momenta is offering nearly 19.94 million shares at HK$295.60 (US$38) each, ahead of Wednesday’s scheduled trading debut.
The start-up successfully tested market sentiment amid a broader sales slump in China’s automotive industry. Compared with the five other issuers whose public offerings also closed on Friday – Reconova Technologies, an AI company; Yikong Zhijia Technology, a global leader in autonomous driving for mining operations; Dongfang Kemai, an e-paper display manufacturer; Baogai New Materials, which makes polymer-composite manhole covers; and Basic Semiconductor, based in Shenzhen – Momenta represented the week’s largest fundraising effort and carried a post-listing valuation of HK$69.63 billion.
The company is also the second “red-chip” firm this year to secure Beijing’s regulatory approval to list in Hong Kong via an offshore structure.
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