iMotion Automotive Seeking to Raise $100 Million in IPO

Two sources with direct knowledge of the matter have revealed that iMotion Automotive Technology, a Chinese self-driving firm, is set to launch its Hong Kong initial public offering (IPO) at the end of November with a target of raising $100 million. According to Reuters in June, the company was among the first to be granted approval by China's securities regulator for conducting an overseas share sale following the implementation of new rules in March.

iMotion, founded in 2016, did not promptly reply to a request for comment from Reuters.

The sources could not be identified because the information had not been officially disclosed. The firm warned that its plans could change due to the ongoing volatility in global financial markets caused by high inflation and elevated world interest rates.  iMotion initially aimed to raise $300 million, as reported by Bloomberg News in March, but has since reduced its fundraising goal.

In early October, state media reported that China plans to support companies in the smart vehicle supply chain in forming dedicated groups to enhance innovation. This is part of China's efforts to establish standards for assisted and autonomous driving functions by 2025. The world's biggest auto market is said to be China.

According to LSEG data, new share sales in the first three quarters of 2023 have decreased by 32.5 percent, making it one of Hong Kong's worst years for IPOs in recent history. The deal will help to bring some balance to this challenging trend.