General Motors-backed Momenta's Hong Kong initial public offering, which valued it around $9 billion, saw a muted trading debut amid caution about the profitability of the self-driving auto industry.
Shares of the Chinese autonomous driving company, which raised $751 million in its initial public offering, saw a tepid start in a market buzzing with new listings. The stock was 2.8% higher from its IPO price at 303.80 Hong Kong dollars, equivalent to $38.74.
Momenta's subdued start belied its strong investor demand. The retail portion of its offering was 413.6 times oversubscribed while the institutional tranche was 20.3 times covered.
Momenta, which is based in Suzhou, Jiangsu in mainland China, joins the growing list of autonomous-driving companies tapping Hong Kong's equity market for capital and exposure to Asian investors.
Both Pony AI and WeRide, which were previously listed in the U.S., went public in Hong Kong last year. The two companies' shares in Hong Kong have lost 56% and 38%, respectively, so far this year, underscoring the market's concerns over how quickly the self-driving industry can achieve large-scale commercialization and reach profitability.
Like many of its self-driving peers, Momenta has yet to post a profit. Although it grew revenue 83% last year, its net loss widened to 3.46 billion yuan from 3.21 billion yuan, equivalent to $472.5 million.
The company said it plans to use about 60% of its IPO's net proceeds for research and development to advance its core autonomous- driving technology. Another 20% will be put toward the commercialization and deployment of its robotaxi services.
Founded in 2016, Momenta develops self-driving systems for passenger vehicles and robotaxis. It has partnered with ride-hailing giant Uber to deploy robotaxis in Munich and is working with the Mercedes-Benz Group to develop self-driving cabs in Abu Dhabi. In Southeast Asia, it has teamed up with Grab to expand its robotaxi business in the region.
Its customers and partners include major automakers like Toyota, BYD and SAIC Motor.
Write to Jiahui Huang at jiahui.huang@wsj.com
(END) Dow Jones Newswires
July 08, 2026 00:02 ET (04:02 GMT)
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