Horizon Robotics to raise $595m in Hong Kong share sale

Horizon Robotics, an AI chipmaker based in Beijing, aims to raise around HK$4.67 billion (US$595 million) through a share placement, according to a filing with the Hong Kong Stock Exchange on June 12, 2025.

The company plans to sell 681 million existing Class B shares at HK$6.93 each (US$0.9).

Current shareholders, including 5Y Capital, Morningside China TMT Fund, and HRRB Holdings, will sell the shares to at least six independent investors via a book-building process managed by Goldman Sachs, Morgan Stanley, and UBS.

These shares represent about 5.2% of Horizon’s share capital, 2.1% of the voting rights, and 4.9% of its enlarged share capital post-issuance.

🔗 Source: South China Morning Post

🧠 Food for thought

1️⃣ China’s strategic push in automotive AI reflects global tech competition

Horizon Robotics’ substantial fundraising fits into China’s broader national strategy to achieve leadership in artificial intelligence technologies.

The Chinese government issued its New Generation Artificial Intelligence Development Plan in 2017, highlighting AI development as a national priority with regional governments committing billions to the sector1.

This latest $595 million fundraising, coming just months after Horizon’s $690 million IPO, demonstrates China’s determination to develop domestic capabilities in advanced semiconductor technology for autonomous vehicles.

The focus on allocating 70% of proceeds to R&D aligns with President Xi Jinping’s emphasis on achieving world-leading levels in AI while reducing dependence on foreign technology1.

Horizon’s positioning as China’s largest provider of integrated advanced driver assistance systems reflects the country’s ambition to compete with established global players in the automotive AI space.

2️⃣ Strategic partnerships becoming essential in the autonomous vehicle ecosystem

Horizon’s allocation of funds toward joint ventures, particularly its Carizon partnership with Volkswagen, highlights the increasing importance of collaboration in the autonomous vehicle market.

Volkswagen Group, like many traditional automakers, is strategically investing in software development and electrification with the goal of achieving Level 4 automation through partnerships with specialized AI chip providers2.

This trend of collaboration between traditional automakers and specialized AI companies is reshaping the industry, with similar partnerships forming between companies like Toyota and Waymo, and General Motors with Cruise3.