Horizon Robotics, a Beijing-based company specializing in the development of both software and hardware for self-driving vehicles, made a significant mark with its stock market debut on October 24, 2024, in Hong Kong. The company successfully raised HK$5.4 billion (approximately $696 million) through the sale of 1.4 million shares, setting its IPO price at HK$3.99 per share. On its first trading day, Horizon’s stock increased by 2.8% to HK$4.1 and experienced an impressive intraday surge of up to 38%. With its stock performance, the company’s market capitalization soared to $6.9 billion, marking it as the largest IPO in Hong Kong for the year.
The significant demand for Horizon Robotics’ shares was evident, as the offering attracted several cornerstone investors, including renowned companies like Baidu and Alibaba, as well as high-profile individuals such as French billionaire Rodolphe Saadé. Horizon’s leadership expressed clear intentions for utilizing the proceeds from the IPO to enhance their research and development efforts over the next five years. Yu Kai, the company’s cofounder, chairman, and CEO, emphasized the importance of this listing as a critical step toward international market expansion while reiterating a commitment to technological innovation focused on improving user experience and safety in transportation.
Co-founded in 2015 by Yu, along with ex-Baidu chief R&D architect Huang Chang and associate director Tao Feiwen, Horizon Robotics has positioned itself as a pioneer in the autonomous driving sector. The company’s flagship product, Horizon SuperDrive, is designed to facilitate human-like autonomous driving in various settings, including urban environments, highways, and parking. The system theoretically supports Level 4 automation, which allows it to operate independently under certain conditions. In addition to the advanced driving systems, Horizon Robotics provides features such as automatic emergency braking and parking assistance, and it licenses its software to clients for customized product development.
As of mid-2023, Horizon Robotics claims to be the leading provider of assisted and autonomous driving systems in China by unit installation volume, with a reported 900,000 systems installed in passenger vehicles and a 15.4% market share. However, the company is still grappling with profitability, having reported a net loss of 5.4 billion yuan ($758 million) in the first half of the year, nearly double its loss from the previous year. Despite revenue more than doubling to 934.6 million yuan, the increased research and development expenses have hindered its financial stability. Horizon plans to achieve breakeven in the coming years by bolstering sales, tapping into additional markets in Japan, South Korea, and Europe, and launching more advanced autonomous driving solutions.
The journey toward fully autonomous vehicles has been marred by safety concerns, particularly in light of several accidents involving self-driving technology. Notably, Tesla’s recent unveiling of its driverless “Cybercab” prototype raised questions among investors regarding the specifics of its underlying technology. All the while, other major players in the industry have faced their own challenges, with Apple reportedly discontinuing its long-rumored self-driving electric car project earlier this year. Nevertheless, many companies in the autonomous driving space are persevering, with several filing for IPOs or earning permits to test driverless services on public roads.
Among these emerging competitors is Pony AI, a startup founded by a former Baidu employee that has recently filed for an IPO in the U.S. Joined by established firms such as Baidu and WeRide, which have successfully tested their own autonomous ride-hailing services, the competition in the self-driving market remains fierce. With a mix of innovation and regulatory scrutiny, these companies are racing not only to enhance their respective technologies but also to reassure investors and consumers about the safety and reliability of self-driving cars. Horizon Robotics is poised to be a significant player within this transformative landscape, demonstrating resilience and ambition in pushing the boundaries of autonomous driving technology.