Wednesday, October 23, 2024

Baillie Gifford, Norges Said to Invest in Horizon Robotics Hong Kong IPO

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(Bloomberg) — Baillie Gifford & Co. and Norges Bank Investment Management were among the investors in Horizon Robotics’ $696 million Hong Kong initial public offering, according to people familiar with the matter.

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Baillie Gifford put in an order of more than $500 million — enough to cover the entire portion reserved for institutional investors, excluding the cornerstone tranche, the people said. Allocations were, however, smaller than orders as the IPO was oversubscribed, they added.

Norway’s $1.7 trillion sovereign wealth fund Norges also bid in the IPO, as did Boston-based Wellington Management Group, the people said, asking not to be identified because the information isn’t public.

IPO books for the Chinese provider of technology used in autonomous driving systems were covered multiple times, with strong demand from global long-only investors, technology specialists and Chinese funds, the people said.

Representatives for Horizon Robotics, Baillie Gifford, Norges and Wellington declined to comment.

Horizon Robotics priced its IPO at the top of the range Tuesday, in what is set to be Hong Kong’s second-largest listing this year after Midea Group Co.’s $4.6 billion share sale last month. The Hang Seng Index is up 20% since Sept. 11.

China Resources Beverage Holdings Co.’s shares listed in the city Wednesday, immediately jumping 14% from the IPO price in another indication that Hong Kong’s market is staging a comeback. CR Beverage raised about $650 million in its IPO.

Founded in 2015, Horizon Robotics is controlled by Kai Yu, an AI scientist who used to work at Baidu and was instrumental in its push into autonomous driving.

Chinese tech heavyweights Alibaba Group Holding Ltd. and Baidu Inc. were among the four cornerstone investors that agreed to subscribe for about $220 million in Horizon Robotics stock in the IPO.

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