Horizon Robotics shares jump 28.3% in Hong Kong trading debut
Update stock close in first, third and fourth paragraph
By Scott Murdoch and Donny Kwok
SYDNEY, Oct 24 (Reuters) -Shares of Horizon Robotics 9660.HK ended 2.8% higher on their Hong Kong debut on Thursday, after the Chinese autonomous vehicle maker raised $696 million in this year's largest initial public offering (IPO) in Hong Kong.
The company sold 1.355 billion shares at HK$3.99 each, according to the its filings.
The stock traded as high as HK$5.50, up 37.8% from the IPO price, before giving up most gains and ending at HK$4.10 in the first day of trade, with 493.2 million shares worth HK$2.38 billion ($306.32 million) changing hands.
The benchmark Hang Seng Index .HSI fell 1.3%. Horizon Robotics was the seventh most actively traded stock by turnover.
Horizon Robotics' debut eclipsed China Resources Beverage 2460.HK, which last week finalised a $650 million new share sale. It is also the largest tech sector IPO in Hong Kong since SenseTime Group 0020.HK raised $740 million in late 2021.
China Resources Beverage had gained 15% on its debut in Hong Kong.
The positive performances will give dealmakers hope that the negative sentiment towards Hong Kong IPOs in the past two years as the result of volatile financial markets and globally high interest rates is starting to ease.
New share sale volumes in Hong Kong ahead of the two latest debuts were at their lowest level in two decades, according to Dealogic data.
Retail investors bid for nearly 34 times the amount of stock on offer in Horizon Robotics' IPO while the institutional portion was 14 times covered, according to the company's filings.
Horizon Robotics had an implied market capitalisation of $6.7 billion from the IPO, according to its filings.
($1 = 7.7697 Hong Kong dollars)
Reporting by Scott Murdoch and Donny Kwok; Editing by Tom Hogue, Muralikumar Anantharaman and Hugh Lawson
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
