iMotion’s push to go public via an initial public offering is not the first for teams operating within the same industry.
iMotion Automotive Technology Suzhou Co, China’s golden self-driving startup, is making all plans to file for an Initial Public Offering (IPO) in Hong Kong as it looks to expand its capital base for growth. according to a report Per BNNBloomberg, the startup is looking to raise in the range of $200 million to $300 million in what will be one of the highest since the COVID-19 pandemic began to clear up on its shores.
Discussions surrounding the proposed initial public offering are still in their infancy and negotiations may change in the near future. However, the report noted that sources close to the matter claimed that iMotion chose to work with CCB International Holdings Ltd., Citigroup Inc. and Huatai Securities Co. in 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 considering an initial public offering this year, although there is no set date as of yet.
The Chinese tech market is a booming market, and specialized tech teams like iMotion are riding the wave noticeably. The company makes key software used in self-driving cars, a segment that the Chinese government is focusing on critically at the moment. The traction the country has gained in this industry, as well as in the fast-growing electric vehicle sector, has positioned it as a world leader.
According to data from analysts at Nomura Holdings Inc, the industry will be worth more than 1.7 trillion yuan ($245 billion) by 2025, with China expected to account for about half of this valuation. iMotion, as well as its counterparts in the country, are positively positioned to benefit from this growth.
iMotion IPO to learn from related trends
iMotion’s push to go public via an initial public offering is not the first for teams operating within the same industry. One of the company’s main rivals, Guangzhou WeRide Technology Co, also raised $500 million through an initial public offering it conducted last year.
In addition to Guangzhou WeRide, Hesai Group, a developer of sensor technologies, also went public through a similar route of stock sales for the first time in 2021. Hesai Group raised a whopping $190 million from investors in that moment.
The Chinese technology sector, particularly the world of electric vehicles, is expanding with many promising growth companies, most of which have sought to go public in the United States. Nio Inc (NYSE: NIO), a Shanghai-based maker of electric vehicles, is among the companies that sought a primary listing in the US. The firm is now considering a secondary listing in Singapore as it seeks to diversify its investor base.
Building on the appeal of the US market, Geely’s Zeekr is also seeking a US initial public offering according to a previous report by Coinspeaker.
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Benjamin Godfrey is a blockchain enthusiast and journalist who enjoys writing about the real-life applications of blockchain technology and innovations to drive mainstream acceptance and global integration of emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain-based sites and media. Benjamin Godfrey is a lover of sports and agriculture.
