HONG KONG: Momenta Global Ltd, a Chinese autonomous driving startup, has roped in carmaker Mercedes-Benz AG and Singapore wealth fund GIC Pte Ltd as cornerstone investors for its Hong Kong initial public offering (IPO), people with knowledge of the matter say.
Fidelity International Ltd and BlackRock Inc are also in talks to become cornerstone investors, the people said, asking not to be identified because the information is private.
Momenta is targeting to raise about US$750mil to US$800mil from the offering, and plans to set aside around half of the IPO shares for cornerstone investors, according to the people.
Momenta is considering seeking a post-money valuation of approximately US$9bil in the IPO, which could launch as soon as today, the people said.
Deliberations are ongoing and details of the offering could change, the people said.
Mercedes, which has held a stake in Momenta since 2017, said it planned to continue its strategic collaboration with the Chinese firm, and declined to comment on the IPO plans.
Suzhou-based Momenta is backed by investors including General Motors Co and Chinese internet giant Tencent Holdings Ltd.
It’s following self-driving firms including Pony AI Inc and WeRide Inc that have tapped Hong Kong’s capital markets to support technological development.
Founded in 2016, Momenta supplies technology for mass-produced vehicles and robotaxi services. — Bloomberg
