China’s Momenta considers shifting IPO to Hong Kong from New York, sources say

(Reuters) -Chinese language autonomous driving developer Momenta is contemplating shifting its IPO to Hong Kong from New York, 4 folks mentioned, including to a rising checklist of Chinese language corporations opting to debut within the Asian monetary hub amid heightened U.S.-China tensions.

The potential change in Momenta’s itemizing venue comes after the expiration in June of an approval by China’s securities regulator to checklist within the U.S., which was granted mid-last yr, in accordance with the regulator’s web site.

Momenta is a number one Chinese language provider of superior driving assisted system options, akin to Tesla‘s self-driving know-how that may navigate city site visitors below human drivers’ supervision.

The corporate lately knowledgeable a few of its buyers about its plan to doubtlessly checklist in Hong Kong in 2026, two of the folks mentioned, including the plan, which has not been reported beforehand, is at an early stage and is topic to adjustments.

Momenta, backed by buyers comparable to Toyota Motor and auto elements provider Bosch, is contemplating a change in itemizing venue because it nears completion of a pre-IPO fundraising spherical, mentioned two of the folks.

One in all them mentioned the spherical is anticipated to contain buyers, together with Mercedes-Benz and Hyundai.

Particulars of the IPO, such because the timeline, providing dimension and valuation are but to be finalised, the folks mentioned.

All of the sources declined to be recognized because the plan just isn’t public but.

Momenta mentioned it has not made any remaining choice concerning IPO plans, together with the itemizing venue.

“Any suggestion that Momenta has knowledgeable buyers of a confirmed plan to checklist in Hong Kong in 2026 is unfaithful,” the corporate mentioned, including it has not introduced or confirmed any pre-IPO fundraising spherical or its members.

Hong Kong Exchanges and Clearing Ltd (HKEX), town’s trade operator, declined to touch upon particular person corporations.

The China Securities Regulatory Fee (CSRC) didn’t reply to Reuters request for touch upon Momenta’s potential shift of the itemizing venue.

Mercedes-Benz did not reply to a question for remark. Hyundai mentioned there may be “a compelling use case” to collaborate with Momenta in China for its sturdy autonomous driving tech, with out elaboration.

TOP GLOBAL BOURSE

The potential shift in Momenta’s itemizing venue underscores Hong Kong’s place as the first offshore fundraising venue for Chinese language corporations amid U.S. lawmakers’ menace to delist Chinese language companies from American exchanges.

Heightened commerce tensions between China and the US have additionally prompted a rising variety of Chinese language corporations to favor Hong Kong for listings over the previous yr.

Hong Kong, fueled by the inflow of Chinese language corporations, has emerged as the highest world bourse by quantity of IPOs and second listings mixed up to now this yr, overtaking its greatest rival – the New York Inventory Trade, in accordance with knowledge from LSEG.

In line with HKEX, over 230 corporations have filed publicly for preliminary or second listings within the metropolis as of Thursday.

The town has seen complete funds raised from such choices, predominately by Chinese language corporations, attain about $20 billion up to now this yr, exceeding $11.3 billion in all of 2024, LSEG knowledge confirmed.

In contrast, China corporations have raised simply $776 million by preliminary and second listings within the U.S. up to now this yr, with tea chain Chagee Holdings’ $473 million IPO being the most important such providing.

Based by former Microsoft worker Cao Xudong in 2016 in China, Momenta has been making forays into abroad markets and has a analysis centre in Stuttgart, Germany.

It should start exams of stage 4 autonomous automobiles in Germany subsequent yr with Uber. Its superior driver help techniques are utilized by world manufacturers together with Toyota, Mercedes-Benz, and Audi in China.

Chinese language suppliers comparable to Momenta, lidar maker Hesai and battery large CATL have gotten main suppliers of key applied sciences and promoting factors for good electrical automobiles, that are reshaping automobile improvement.

(Reporting by Reuters employees; Modifying by Sumeet Chatterjee and Kim Coghill)