Momenta IPO: autonomous vehicle company aims to raise $752 million in Hong Kong.

Momenta IPO: autonomous vehicle company aims to raise $752 million in Hong Kong.

      Momenta is set to enter the public markets. The autonomous driving software company has initiated its Hong Kong IPO, aiming to raise up to $752 million for investment in AI research and robotaxi development. The IPO is expected to value the GM-backed firm at nearly $9 billion.

      The Suzhou-based company began taking investor orders this week under the stock code 6880. It plans to sell approximately 19.9 million shares at HK$295.60 each, potentially raising up to HK$5.9 billion, or about $752 million, according to Reuters. If it reaches the upper end of its target, the float would assign Momenta a valuation close to $9 billion.

      This marks one of the larger tech listings testing the revival of Hong Kong's IPO market this year.

      What Momenta does

      Momenta develops software that enables vehicles to drive autonomously. It offers two products: mass-market driver-assist systems and full self-driving software for robotaxis. The revenue from the first supports the development of the second.

      The company's list of clients is impressive, with Momenta claiming to work with 24 leading automakers, including Mercedes-Benz, Toyota, Audi, BMW's China division, Honda, and SAIC. Its software is currently installed in 68 car models, up from eight in 2023, and it boasts deployments across eight of the largest car manufacturing groups globally.

      Growing rapidly, still operating at a loss

      The company has experienced significant growth, with revenue increasing by 82% last year to RMB 2.4 billion (about $337 million), following RMB 1.3 billion in 2024 and RMB 743 million in 2023, as indicated in its prospectus. Gross margin rose to 71.6%.

      However, losses are substantial as well, with Momenta reporting a loss of RMB 3.46 billion in 2025, exceeding the previous year's figures. Most of this is attributed to accounting for its preferred shares and substantial research expenses. The firm has indicated it may not achieve profitability in the near future, and the IPO will help fund its ongoing operations.

      Who is backing it

      The investor roster reads like a who's who of the automotive industry; General Motors, China's SAIC, Toyota, and Mercedes-Benz are all investors. Tencent and Singapore's Temasek have also invested, according to Bloomberg.

      Some investors are increasing their stakes, as Mercedes-Benz is set to return as a cornerstone investor in the offering, per the prospectus. Reports have also included asset manager BlackRock and China's Boyu Capital in the cornerstone group. Founder Cao Xudong, who established Momenta in 2016, retains control through dual-class shares.

      Where the funds will go

      The allocation of funds is straightforward. Approximately 60%, or HK$3.4 billion, will be directed towards core technology and research over the next five years. About 20% will accelerate the rollout of robotaxi services.

      The timeline is tight. Momenta anticipates confirming share allocations by July 7, with trading of its Class A shares expected to begin the following day.

      Entering a competitive market

      Momenta is entering a competitive landscape. China already has the world's busiest robotaxi sector, with Pony.ai and Baidu's Apollo Go offering fully driverless rides in multiple cities, and WeRide scaling its operations.

      Automakers are also heavily involved. XPeng has launched a robotaxi-capable car, while Tesla only recently introduced its Full Self-Driving (FSD) system in China after several delays. The competition for data access and city permits is intense.

      Momenta's robotaxi initiatives are still in the early stages, but they are ambitious. The company secured permits for unmanned rides in Shanghai in January and is collaborating with Mercedes-Benz and UAE taxi firm Lumo to create what it describes as the world's first premium robotaxi. It plans to launch services in Abu Dhabi and Munich, partnering with Uber and Grab. For the moment, this segment generates minimal revenue.

      Why it matters

      This listing represents a wager on the future direction of the automotive industry. Chinese developers are already at the forefront of real-world driverless vehicle deployments. A new influx of capital allows Momenta to keep up as competition in the robotaxi arena intensifies.

      Additionally, it serves as a barometer for Hong Kong. Following a few lean years, Chinese AI and chip companies are once again entering the market. Momenta's IPO will determine if investors remain interested in financing the long and expensive journey toward full autonomy, despite the accompanying losses.

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Momenta IPO: autonomous vehicle company aims to raise $752 million in Hong Kong.

The Momenta IPO aims to raise up to $752 million in Hong Kong, with a valuation close to $9 billion, as the firm, supported by GM and Toyota, finances its robotaxi growth.