Momenta Global debuts nearly flat in Hong Kong after raising $751 million in IPO

Global Market: Momenta Global debuts nearly flat in Hong Kong after $751 million IPO

Momenta Global shares debuted on the Hong Kong Stock Exchange with a muted reception. The autonomous-driving software developer raised HK$5.89 billion in its initial public offering. Investor sentiment remains cautious despite strong cornerstone backing from major firms. The company plans to use IPO proceeds for research and expansion. Momenta's listing is a gauge for Chinese AI and technology firm investor demand. Shares of Chinese autonomous-driving software developer Momenta Global made a muted debut on the Hong Kong Stock Exchange on Wednesday, reflecting cautious investor sentiment despite the company's successful HK$5.89 billion ($751 million) initial public offering, according to Reuters. The stock opened at HK$301, slightly above its IPO price of HK$295.60. It climbed to an intraday high of HK$314.80 before easing to trade around HK$299, indicating that early gains were short-lived as investors assessed valuations in the technology sector. US MarketsPowered By As on 08 Jul 2026, 01:30 AM IST S&P 500 Top Gainers Cognizant Tech Solns43.94(6.21%) Occidental Petroleum51.68(5.88%) Cboe Global Markets258.64(5.53%) Gilead Sciences136.36(5.21%) Gainers" S&P 500 Top Losers Intel110.39(-9.66%) Teradyne343.11(-9.59%) Solstice Advanced Mat62.10(-8.74%) Coterra Energy32.56(-8.62%) Losers" IPO debut tests appetite for Chinese AI firms According to Reuters, Momenta's market debut is being closely watched as a gauge of investor demand for Chinese artificial intelligence and advanced technology companies. The listing also comes at a time when Hong Kong is facing a record wave of lock-up expirations following a strong first half for new share offerings. Market participants noted that investors have become more selective after a busy IPO period, with valuations in AI and technology stocks drawing closer scrutiny. Strong cornerstone backing supports listing Momenta attracted a high-profile group of cornerstone investors ahead of the offering, underscoring international interest in China's AI sector. Existing investor Mercedes-Benz participated alongside global asset managers including BlackRock, GIC, Fidelity International, Oaktree Capital Management, Franklin Templeton and ChinaAMC. Chinese investment firm Boyu Capital also backed the offering, according to the company's prospectus. Reuters reported that analysts viewed the strong lineup of cornerstone investors and the pricing of the IPO at the top end of the marketed range as evidence of continued global interest in China's AI industry, even as broader market sentiment remains measured. Mixed performance for Hong Kong's new listings Momenta's listing coincided with several other IPO debuts in Hong Kong, which delivered mixed performances. Visual AI company Reconova fell sharply at the open, while mining autonomous-driving technology firm Eacon posted modest gains. Trench-cover manufacturer Baogai opened flat, whereas silicon carbide chipmaker BasicSemi recorded stronger early gains. The varied performance highlighted investors' increasingly selective approach toward newly listed companies, particularly within the technology sector. Company focuses on autonomous driving technology Founded in 2016 by former Microsoft researcher Cao Xudong, Momenta develops advanced driver-assistance software for automobile manufacturers. Its technology enables vehicles to perform functions such as steering, braking, lane changes and parking, while still requiring drivers to remain attentive and ready to assume control. According to the company's prospectus, vehicles equipped with Momenta's software exceeded 680,000 by the end of 2025. Its customer and partner roster includes Toyota, Mercedes-Benz, SAIC Motor, General Motors, BYD and Audi. IPO proceeds earmarked for expansion Reuters reported that Momenta plans to allocate around 60% of the IPO proceeds toward research and development to strengthen its autonomous-driving technology. Another 20% will be invested in robotaxi services, while 10% will support its mass-produced vehicle business. The remaining 10% has been earmarked for worki Momenta's market debut is being closely watched as a gauge of investor demand for Chinese artificial intelligence and advanced technology companies. ng capital and general corporate purposes. The allocation underscores the company's strategy of expanding both its core driver-assistance business and its presence in the emerging autonomous mobility market.

China's Momenta debuts flat in Hong Kong as IPO caution grips AI listings

SINGAPORE/HONG KONG, July 8 (Reuters) - Shares of Momenta Global debuted flat in Hong Kong on Wednesday, after the Chinese autonomous-driving firm raised about HK$5.89 billion ($751 million) in its initial public offering. The stock opened at HK$301 versus its IPO price of HK$295.60, reaching as high as HK$314.80 before trading at the HK$299 level. Momenta's debut is a key test of investor demand for Chinese AI and advanced technology companies, as Hong Kong faces a record wave of lock-up expirations after a strong first-half for new listings. "July's peak unlocking period is clearly weighing on things, some new listings aren't performing as expected, so the market sentiment has cooled noticeably," said Dickie Wong, executive director of research at Hong Kong-based uSMART. "Investors seem more selective on valuations right now, especially in AI or tech." Cornerstone investors, or big investors that committed to buy shares before listing, included existing backer Mercedes-Benz, BlackRock funds and China's Boyu Capital, according to the prospectus. Other cornerstone investors include GIC, Fidelity International, Oaktree, Franklin Templeton and ChinaAMC. That lineup of cornerstone investors and pricing at the top end of the offer range showed decent global investor appetite for China's AI story, said Gary Ng, senior economist for Asia Pacific at Natixis CIB. "Still, the lack of a sharp surge suggests sentiment remains cautious with a focus on long-term opportunities, unlike the global AI hype," Ng said. "There can be pressure on valuation in the tech sector. Whether these firms can hold up after listing is key to watch, which may not always be the case for previous cases." Other Hong Kong debutants on Wednesday also had a mixed start. Visual AI firm Reconova opened 16.9% lower, while mining autonomous-driving firm Eacon started trading 3.5% higher. Trench-cover maker Baogai opened flat, while silicon carbide chip maker BasicSemi opened 7.9% higher. Founded in 2016 by former Microsoft researcher Cao Xudong, Momenta sells driving-assistance software to automakers. The systems help cars steer, brake, change lanes and park, but drivers still need to stay alert and ready to take control. Momenta plans to use about 60% of the IPO proceeds for research and development, 20% for robotaxi services, 10% for its mass-produced vehicle business and 10% for working capital. The company said in the prospectus that vehicles using its software had topped 680,000 by the end of 2025. Its customers and partners include Toyota, Mercedes-Benz, SAIC Motor , General Motors, BYD and Audi. ($1 = 7.8421 Hong Kong dollars) (Reporting by Yantoultra Ngui in Singapore and Jiaxing Li in Hong Kong; Editing by Christopher Cushing, Muralikumar Anantharaman and Sonali Paul) By Yantoultra Ngui and Jiaxing Li

Chinese autonomous driving firm Momenta opens slightly higher in Hong Kong stock debut

HONG KONG/SINGAPORE, July 8 (Reuters) - Shares of Momenta Global opened slightly higher in their Hong Kong debut on Wednesday, after the Chinese autonomous driving firm raised about HK$5.89 billion ($751 million) in its initial public offering. The stock opened at HK$301 versus its IPO price of HK$295.60. Momenta's debut is a key test of investor demand for Chinese artificial intelligence and advanced technology companies, as Hong Kong faces a record wave of lock-up expirations after a strong first-half for new listings. ($1 = 7.8421 Hong Kong dollars) (Reporting by Jiaxing Ling in Hong Kong and Yantoultra Ngui in Singapore; Editing by Christopher Cushing and Muralikumar Anantharaman) By Jiaxing Li and Yantoultra Ngui