Shares of Horizon Robotics ended 2.8% higher during their debut on the Hong Kong Stock Exchange on Thursday, following a successful initial public offering (IPO) that raised $696 million—the largest in Hong Kong this year. The company sold 1.355 billion shares at HK$3.99 each, as detailed in its filings.
During the trading day, the stock reached a high of HK$5.50, representing a 37.8% increase from the IPO price. However, it retraced most of those gains, ultimately closing at HK$4.10. The first day of trading saw 493.2 million shares exchanged, amounting to HK$2.38 billion ($306.32 million).
In contrast, the benchmark Hang Seng Index fell 1.3%, but Horizon Robotics still emerged as the seventh most actively traded stock by turnover on its debut. The company’s IPO surpassed the previous week’s $650 million share sale by China Resources Beverage and marks the largest tech sector IPO in Hong Kong since SenseTime Group raised $740 million in late 2021. For context, China Resources Beverage saw a 15% increase on its own debut.
The positive performance of Horizon Robotics’ IPO may signal a potential easing of the negative sentiment surrounding Hong Kong IPOs over the past two years, which has been largely influenced by volatile financial markets and rising global interest rates. Prior to the recent debuts, new share sale volumes in Hong Kong had hit their lowest levels in two decades, according to Dealogic data.
The IPO attracted significant interest, with retail investors bidding nearly 34 times the amount of stock available, while the institutional portion was covered 14 times, highlighting strong demand for the offering. Following the IPO, Horizon Robotics boasted an implied market capitalization of $6.7 billion, as indicated in its filings.
