China’s Auto-Driving Startup iMotion to File for IPO in Hong Kong

China’s golden self-driving startup iMotion Automotive Technology Suzhou Co is making all plans to file for an Initial Public Offering (IPO) in Hong Kong as it seeks to expand its capital base for growth. According to a report by BNNBloomberg, the startup is looking at raising the sum of $200 million to $300 million in what will be one of the highest since the COVID-19 pandemic started clearing off on its shores.

The discussions surrounding the proposed IPO are still in their infancy and the negotiations may change in the near future. However, the report highlighted that sources close to the matter affirmed that iMotion has chosen to work with CCB International Holdings Ltd., Citigroup Inc., and Huatai Securities Co. on preparations for a first-time share sale.

Many Chinese companies make their debut with a first share sale and in the case of iMotion, the firm is looking at conducting the IPO as early as this year, even though there has been no defined date as of now.

The Chinese tech market is a burgeoning one and outfits with specialized tech like iMotion are notably riding the wave. The company manufactures key softwares that are used in self-driving cars, a segment that the Chinese government is critically focused on at this time. The traction the country has gained in this industry as well as in the fast-growing Electric Vehicle sector has positioned it as a global leader.

According to data from Nomura Holdings Inc analysts, the industry is bound to be worth over 1.7 trillion yuan ($245 billion) by 2025 and China is projected to account for about half of this valuation. iMotion as well as its counterparts in the country are thus positively positioned to benefit from this growth.

iMotion IPO to Learn from Related Trends

The push by iMotion to go public via an IPO is not the first for outfits operating within the same industry. One of the company’s core rivals, Guangzhou WeRide Technology Co also raised the sum of $500 million through an IPO that it conducted last year.

Besides Guangzhou WeRide, Hesai Group, a developer of sensor technologies also went public through a similar route of first-time share sales back in 2021. Hesai Group pulled a massive sum of $190 million from investors at the time.

The Chinese tech sector, particularly the EV world, is sprawling with a lot of promising growth firms, most of which sought out public listing in the United States. Nio Inc (NYSE: NIO), a Shanghai-based EV manufacturer remains amongst the firms that sought a primary listing in the US. The firm is now considering a secondary listing in Singapore as it sought to diversify its investor base.

Riding on the attractiveness of the US market, Geely’s Zeekr is also seeking a US IPO per an earlier report by Coinspeaker.