Updated
Updated · Bloomberg · Jul 7
Momenta Global Debuts in Hong Kong After $752 Million IPO as Shares Whipsaw in Gray Market
Updated
Updated · Bloomberg · Jul 7

Momenta Global Debuts in Hong Kong After $752 Million IPO as Shares Whipsaw in Gray Market

2 articles · Updated · Bloomberg · Jul 7

Summary

  • HK$5.9 billion raised by Momenta Global set up the Chinese autonomous-driving firm’s Hong Kong trading debut on Wednesday, with the IPO priced at HK$295.60 a share.
  • More than a dozen cornerstone investors, including GIC, Fidelity International, BlackRock and Mercedes-Benz, took roughly half the offering in exchange for guaranteed allocations and lockup commitments.
  • Gray-market trading pointed to volatile demand ahead of the listing, with the stock swinging from a 10% gain to a 13% loss before its market debut.
  • The float is testing Hong Kong investors’ appetite for loss-making companies tied to promising technologies, with Momenta backed by General Motors.

Insights

Can Momenta’s IPO defy the AV industry's brutal cash-burning race and finally turn a profit?
As automakers develop their own tech, how will Momenta avoid becoming just another replaceable parts supplier?