Sources told Reuters that Chinese auto-driving developer Momenta was considering a shift in listing plans. The company is now looking at Hong Kong for its initial public offer instead of New York.
Momenta would join a list of Chinese companies looking to raise funds closer to home, as tensions between the US and China intensify.
This comes as a result of the approval by China’s Securities regulator to list in the US expiring last June.
According to regulator website, the permit was granted by mid-2023.
Two people have told Reuters that Momenta, the leading Chinese supplier of driver assistance technology, recently informed some investors of its intention to list in Hong Kong in 2026.
The discussion is still at an early stage and the plans could change.
Toyota Motors and German auto parts supplier Bosch are also supporting the company in a fundraising pre-IPO round.
Mercedes-Benz, Hyundai and other manufacturers could be involved in the event.
The final details of the sale, such as its size, timing and value are yet to be determined.
Company denies plans confirmed
Momenta responded to questions by saying that it had not yet made a decision about the venue for its IPO.
The company said that it did not inform investors about a plan to go public in Hong Kong by 2026. It also denied having announced any details or confirmations of its fundraising or potential supporters.
Hong Kong Exchanges and Clearing (HKEC), the city’s exchange operator, refused to comment.
China Securities Regulatory Commission has not responded to a comment request.
Mercedes-Benz declined to comment, and Hyundai said it saw “a compelling case” for collaborating with Momenta China.
Hong Kong consolidates its position as global listings hub
Momenta’s potential shift highlights Hong Kong as the leading fundraising location for Chinese companies, at a moment when US legislators are increasing their pressure on Chinese listing.
According to LSEG, the city has surpassed the New York Stock Exchange in terms of IPOs and secondary listings this year.
Over 230 Hong Kong-listed companies filed for public listing so far. Chinese firms raised nearly $20 billion.
This compares to the $776 million that Chinese companies raised in the US where the tea chain Chagee Holdings offered the most, raising $473 millions.
Expansion of footprint beyond China
Momenta, founded in 2016 by Cao Xudong (former Microsoft executive), has expanded its presence internationally.
It has a research center in Stuttgart and will begin testing level 4 self-driving vehicles there next year.
Momenta’s advanced driver assist technologies is already being used in China by Toyota, Mercedes-Benz, and Audi.
Momenta, along with firms such as Hesai Lidar and CATL Battery maker CATL has emerged as one of the leading technology providers in the development of intelligent electric vehicles.
The report in this post China’s self-driving startup Momenta considers Hong Kong versus the US as a potential IPO destination may change, depending on what happens.
