Horizon Robotics' Hong Kong IPO was a great success, with the founder's net worth soaring by $1 billion

Horizon Robotics' Hong Kong IPO a great success, founder's wealth surges by $1 billion. On Thursday, October 24th, Horizon Robotics' stock officially debuted on the Hong Kong Stock Exchange, with the stock price surging over 30% at one point before falling back, ultimately closing up 2.8%. In this IPO, Horizon Robotics raised HKD 5.4 billion, approximately $695 million. Horizon Robotics founder Yu Kai's personal wealth mainly comes from his holdings in Horizon Robotics stock. After the market close today, Yu Kai's personal wealth reached $915 million, placing him among the wealthiest individuals globally. According to the IPO documents, Yu Kai's ownership stake in the company's relevant class of shares is approximately 81.61% post global offering completion (assuming no exercise of the over-allotment option). In 2015, Yu Kai founded Horizon Robotics in Beijing. One of his mentors at the Technical University of Munich, Volker Tresp, recalled that Yu Kai was very ambitious and aimed to become a leading figure in the field of autonomous driving. Currently, Horizon Robotics' clients include Audi, Hyundai, and BYD. According to the IPO documents, nearly 70% of the IPO proceeds will be used for research and development over the next five years, with the remaining funds allocated for sales and marketing, as well as meeting working capital needs. Yu Kai: Chinese society has already been "changed" by digitization Yu Kai once told Ralf Brandstaetter, Head of Volkswagen China, that Chinese society has already been "changed" by digitization, including the automotive industry. Yu Kai stated: "In China, people see cars as the 'third space' beyond their home and office." In its prospectus, Horizon Robotics pointed out that China is the world's largest market for new passenger cars, with an estimated 21.7 million new passenger car sales in 2023, of which 12.4 million will be smart cars, with a penetration rate of 57.1%. According to insights from ZhiShi Consultancy, it is projected that by 2030, nearly 80% of the passenger cars in China deploying autonomous driving solutions will be high-end autonomous driving solutions, far outpacing the global penetration rate of high-end autonomous driving solutions