Horizon Robotics, which makes artificial intelligence chips for self-driving cars, plans to raise around HK$4.67 billion (US$595 million) with a share placement, as it looks to grow its business and fund more research and development efforts.
Current shareholders, including 5Y Capital, Morningside China TMT Fund and HRRB Holdings agreed to sell shares to at least six independent investors through a book-building process managed by Goldman Sachs, Morgan Stanley and UBS, Horizon said.
On Wednesday, Horizon shares closed at HK$7.44 a share.
The 681 million shares represented about 5.2 per cent of the company’s share capital, about 2.1 per cent of the voting rights in the company’s issued share capital and 4.9 per cent of its enlarged share capital after the issuance of the stock.
The company said around 70 per cent of the proceeds would be invested in research and development over the next five years, with the remainder earmarked for sales, marketing and joint ventures, including its Carizon partnership with Volkswagen. Shareholders and potential investors were advised to exercise caution regarding the deal’s completion.
