A car equipped with Momenta technology exhibited at the IAA Mobility Show to be held in Munich, Germany in September 2025.
Arjun Karpal | CNBC
Shares in Chinese self-driving company Momenta rose 3% at the market open in Hong Kong on Wednesday.
Momenta has priced its shares at HK$295.60 in a HK$5.89 billion ($751 million) initial public offering, the company announced through its prospectus. It was recently traded at HK$304.
According to the prospectus, the Suzhou-based self-driving company plans to use 60% of its net profits over the next five years to enhance its core technologies, including its proprietary algorithms, automation toolchain, and platform Momenta Mainline, in order to remain competitive in the driving automation industry.
The company said it plans to allocate 20% of the proceeds to accelerate the commercialization and large-scale development of its solutions for robotaxi services.
The remaining proceeds will be used to strengthen solutions for mass-produced vehicles, support development of next-generation products, and working capital.
Founded in 2016 and led by CEO Cao Xudong, a former researcher at Microsoft Research Asia, the company develops autonomous driving software for emergency assistance, combined driver assistance, and advanced autonomous driving.
Momenta has already launched a commercial robotaxis service in Shanghai and is expanding its global footprint through strategic partnerships with automakers Audi, Honda, and Mercedes-Benz AG, among others. CNBC previously reported on the company’s agreement with Uber to launch robotaxi services in Europe.
Momenta and Grab entered into a strategic partnership in December in a joint effort to bring advanced autonomous driving technology to the region’s complex urban mobility market. Meanwhile, the company is rapidly developing robotaxi technology and moving toward commercialization of its robotaxi fleet.
According to the prospectus, the company’s sales rose from 1.32 billion yuan in 2024 to 2.41 billion yuan in 2025.
China International Capital Corporation and Deutsche Bank co-sponsored the Hong Kong debut.
Institutional investors including GIC, Fidelity International and BlackRock supported the IPO as cornerstone investors, along with strategic partner Mercedes-Benz, according to the prospectus.
Momenta is part of a wave of companies debuting on the Hong Kong exchange this week, along with Apple supplier Luxshare and semiconductor foundry Nexchip, giving the local tech IPO market a boost.
“We are optimistic about the outlook for Hong Kong’s IPO market given the strong IPO activity and solid pipeline,” said Louis Lau, head of KPMG China’s Hong Kong capital markets group. Lau noted that the successful listing of AI-related companies has strengthened Hong Kong’s position as one of the world’s top capital raising hubs in the sector.
