Self-driving firm iMotion weighs US$300 million Hong Kong IPO, sources say

IMOTION Automotive Technology Suzhou, a developer and provider of artificial intelligence (AI) automated driving solutions, is considering a Hong Kong initial public offering (IPO) that could raise US$200 million to US$300 million, according to people familiar with the matter.

The Suzhou, China-based firm is working with CCB International Holdings, Citigroup and Huatai Securities on preparations for a first-time share sale, said the people, who asked not to be identified as the information is private. The listing could take place as early as this year, the people said.

Deliberations are at an early stage and details of the IPO including size and timeline could change, the people said. Representatives for Citigroup and Huatai declined to comment, while CCBI and iMotion didn’t immediately respond to requests for comment.

iMotion’s potential listing comes as China continues to ramp up support for its driverless mobility companies. The country’s share of the growing global market is expanding, and is forecast to account for around half of the 1.7 trillion yuan (S$331.5 billion) industry by 2025, according to Nomura Holdings analysts.

Chinese companies in the sector are fuelling their growth with first time share sales. Hesai Group, a developer of sensor technologies used in self-driving cars, raised US$190 million in the largest listing by a Chinese issuer in the US market since the crash of Didi Global in 2021.

Guangzhou WeRide Technology, another driverless technology startup, is also considering an IPO that could raise about US$500 million, Bloomberg News reported last year.

Established in December 2016, iMotion makes automated driving systems for carmakers, according to its website. Its backers include Future Capital, Li Auto, and China State-Owned Enterprise Mixed Ownership Reform Fund, according to a statement in 2021. BLOOMBERG