Momenta targets $800M Hong Kong IPO with Mercedes-Benz as cornerstone

Chinese autonomous driving startup Momenta plans to raise as much as $800 million in its Hong Kong IPO, targeting a $9 billion valuation.

Mercedes-Benz Group and Singapore's GIC Pte have signed on as cornerstone investors for the offering, according to people familiar with the matter. Fidelity International and BlackRock are in discussions to join them, the people said, asking not to be identified because the information is private. About half of the shares will be allocated to cornerstone investors.

The Suzhou-based company, which cleared the Hong Kong stock exchange's listing hearing on Tuesday, is seeking to raise $750 million to $800 million, the people said. China International Capital Corp and Deutsche Bank AG are joint sponsors. Momenta may start gauging investor interest as early as this week, with the IPO expected to launch as soon as Monday.

Momenta posted revenue of 2.41 billion yuan ($332 million) in 2025, up 81.8 percent from a year earlier, according to its post-hearing filing. Licensing income surged 42-fold over three years to 968 million yuan. The company reported a net loss of 3.5 billion yuan last year, while cash reserves exceeded 10 billion yuan. R&D spending reached 1.87 billion yuan, or 77.5 percent of annual revenue.

Founded in 2016 by Cao Xudong, Momenta has partnered with 24 automakers globally, including nine of the world's top 10 carmakers. Vehicles equipped with its systems have surpassed 900,000 units, with more than 100 mass-produced models delivered. The company held a 65 percent share of global urban NOA sales among independent solution providers in the 12 months through February, according to China Insights Consultancy.

Strategic investors include SAIC Motor, General Motors, Mercedes-Benz and Toyota Motor. Ahead of the IPO, Cao holds a 7.84 percent stake, while SAIC owns 9.45 percent through ZJSmart Holdings and General Motors holds 9.35 percent. Momenta raised more than $1.2 billion in pre-IPO financing in 2025.

The pricing gives Momenta an enterprise value of roughly $9 billion, a premium reflecting its dominant position in China's autonomous driving market. First-day trading, expected within weeks, will test institutional appetite for a sector that has seen growing investor interest amid the global push toward self-driving technology.

This article is for informational purposes only and does not constitute investment advice.