Momenta IPO seeks $752M in Hong Kong to fuel AI research and robotaxi expansion

Self-Driving Firm Momenta Opens $752M Hong Kong IPO

Momenta Global, a Chinese self-driving software firm backed by General Motors, Toyota, and Mercedes-Benz, has launched its Hong Kong IPO this week, seeking to raise up to HK$5.9 billion or approximately $752 million 1

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. The Suzhou-based company is offering 19.9 million shares at HK$295.60 each under stock code 6880, with the float valuing the company at close to $9 billion 1

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. Share allocations are expected by July 7, with trading in Class A shares scheduled to begin July 8 1

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Strategic Focus on AI Research and Robotaxi Expansion

The Momenta IPO proceeds will fund two critical areas. About 60%, or HK$3.4 billion, will go toward core technology and R&D over five years, including AI computing power, data storage, and engineering team expansion 1

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. Around 20% will accelerate robotaxi expansion, positioning Momenta to compete in China's increasingly crowded autonomous vehicle landscape 2

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. The company offers two product lines: mass-market driver-assist systems that generate current revenue, and full self-driving technology for unmanned rides 1

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Impressive Revenue Growth Despite Mounting Losses

Momenta's revenue growth has been striking. The company posted RMB2.4 billion (approximately $337 million) in revenue for 2025, representing an 82% increase from RMB1.3 billion in 2024 and RMB743 million in 2023 1

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. Gross margin jumped to 71.6% 1

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. However, the self-driving software firm remains unprofitable, posting a loss of RMB3.46 billion ($509 million) in 2025, wider than the RMB3.21 billion loss the previous year 1

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. Most losses stem from accounting treatment of preferred shares and heavy research spending, with the company warning it may not achieve profitability for the foreseeable future 1

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Blue-Chip Automotive Partners and Cornerstone Investors

Founded in 2016 by former Microsoft researcher Cao Xudong, Momenta has assembled an impressive roster of automotive partners 2

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. The company works with 24 leading carmakers, including Mercedes-Benz, Toyota, Audi, BMW's China arm, Honda, SAIC, General Motors, and BYD 1

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. Its software now ships in 68 car models, a dramatic increase from just eight in 2023, with deployments across eight of the world's ten biggest carmaking groups 1

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. By the end of 2025, vehicles using its software had topped 680,000 2

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. Cornerstone investors in the Hong Kong IPO include existing backer Mercedes-Benz, BlackRock, Boyu Capital, GIC, Fidelity International, Oaktree, Franklin Templeton, and ChinaAMC 2

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Competing in China's Fierce Robotaxi Race

Momenta enters a fiercely competitive autonomous vehicle market. China already hosts the world's most active robotaxi scene, with Pony.ai and Baidu's Apollo Go running fully driverless rides in several cities 1

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. Momenta's robotaxi work remains early but ambitious. The company secured permits for unmanned rides in Shanghai in January and is building what it describes as the world's first premium robotaxi with Mercedes-Benz and UAE taxi firm Lumo 1

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. It plans commercial robotaxi services in Abu Dhabi and Munich this year, subject to regulatory approvals, with Uber and Grab as partners 1

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. For now, this business generates minimal revenue 1

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Testing the Hong Kong IPO Market Revival

The listing arrives as Chinese technology firms return to public markets, driven by investor demand for companies tied to AI, chips, and automation 2

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. Beijing has pushed home-grown technology development as competition with the United States intensifies 2

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. Momenta represents one of the larger tech listings testing the Hong Kong IPO market's revival this year 1

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. The debut will indicate whether investors remain willing to fund the lengthy, capital-intensive path to full autonomy despite ongoing losses. For Momenta, the fresh capital provides runway to accelerate development as Chinese developers lead on real-world driverless deployment scale, keeping pace as the autonomous vehicle race intensifies globally 1

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