Updated
Updated · Bloomberg · Jun 26
Mercedes, GIC Back Momenta’s $800 Million Hong Kong IPO
Updated
Updated · Bloomberg · Jun 26

Mercedes, GIC Back Momenta’s $800 Million Hong Kong IPO

1 articles · Updated · Bloomberg · Jun 26

Summary

  • Momenta has secured Mercedes-Benz and Singapore sovereign investor GIC as cornerstone investors for its Hong Kong listing, according to people familiar with the matter.
  • The Chinese autonomous-driving startup is targeting to raise about $750 million to $800 million and plans to allocate roughly half of the IPO shares to cornerstone investors.
  • Fidelity International and BlackRock are also in talks to join the cornerstone tranche, potentially broadening institutional support for the deal.
  • The backing gives Momenta high-profile validation as it pursues one of the larger Hong Kong IPOs tied to autonomous-driving technology.

Insights

With its top customers becoming direct competitors, can Momenta's IPO fuel a path to profit before its core market shrinks?
Momenta's revenue has soared, but so have its losses. Can this IPO succeed in a market that has punished unprofitable tech stocks?