A car equipped with Momenta technology at the IAA Mobility show in Munich, Germany in September 2025.
Arjun Kharpal | CNBC
Shares of Chinese autonomous driving company Momenta rose 3% in their opening session in Hong Kong at the market open on Wednesday.
With an initial public offering of HK$5.89 billion ($751 million), Momenta priced its shares at HK$295.60, the company announced in its prospectus. It recently traded at HK$304.
The Suzhou-based self-driving company plans to use 60% of its proceeds over the next five years to develop its core technology, including its proprietary algorithms, automation toolchain, and its Momenta Mainline platform to remain competitive in the self-driving industry, according to its prospectus.
It plans to allocate 20% of the proceeds to accelerate sales and limited development of its robotaxi service solutions, the company said.
The rest of the money will be earmarked to strengthen solutions for mass-produced vehicles, support the development of next-generation products, and operational goals.
Founded in 2016 and led by CEO Cao Xudong, a former researcher at Microsoft Research Asia, the company develops autonomous driving software such as emergency assistance, integrated driver assistance and highly automated driving.
Momenta has already launched commercial robotics services in Shanghai and is expanding its global footprint through strategic partnerships, such as with automakers Audi, Honda, and Mercedes-Benz AG. CNBC previously reported on the company’s deal with Uber to launch robotaxi services in Europe.
Momenta and Grab signed a strategic partnership in December in a joint effort to bring advanced driving technology to complex urban markets, while the company is rapidly developing its roboaxi technology and moving towards the commercial launch of its fleet of robots.
The company recorded 2.41 billion yuan in revenue in 2025, up from 1.32 billion yuan in 2024, according to its prospectus.
China International Capital Corporation and Deutsche Bank served as co-sponsors for the Hong Kong debut.
Institutional backers including GIC, Fidelity International, and BlackRock, as well as strategic partner Mercedes-Benz, have confirmed the IPO as cornerstone investors, according to its prospectus.
Momenta is among a number of companies making their debut on the Hong Kong exchange this week, alongside Apple retailer Luxshare and semiconductor foundry Nexchip, adding momentum to the local tech IPO market.
“We are optimistic about the outlook for the Hong Kong IPO market, driven by successful IPO transactions and a strong pipeline,” said Louis Lau, head of the Hong Kong capital markets group at KPMG China. Lau noted that the successful listing of AI-related companies has strengthened Hong Kong’s position as one of the world’s top places to raise capital in the sector.
