[HK IPO Subscription] Momenta, #1 globally in urban NOA, can this autonomous driving leader be played?
Hello, I'm Lu Xian. I research the investment field and share overseas information.
The previous post shared Luxshare Precision. Today, let's look at an autonomous driving software company—Momenta. The company primarily provides intelligent driving solutions to automakers. Its urban NOA (Navigate on Autopilot) is already in mass production, and it is also advancing its Robotaxi business. The focus is on revenue growth, narrowing losses, and a valuation approaching HKD 70 billion.
I. IPO Overview
Company Name: MOMENTA GLOBAL LIMITED (06880.HK)
Global Offering Shares: 19,938,300 shares
Hong Kong Public Offering Shares: 1,993,800 shares
International Offering Shares: 17,944,500 shares
Issue Price: HKD 295.60
Board Lot: 20 shares
Minimum Subscription Fee: HKD 5,971.62
Cornerstone Investors: 14 in total, collectively subscribing to USD 375.75 million, approximately HKD 2.944 billion, representing about 49.95% of the Global Offering at the issue price
Greenshoe: Yes
Sponsors: China International Capital Corporation Limited, Deutsche Bank
Reallocation Mechanism: Mechanism B, the Public Offering can increase to a maximum of 15% of the Global Offering
Subscription Period: June 29 – July 3
Allotment Results Announcement: July 6
Grey Market Trading Time: July 7, 16:15-18:30
Listing Date: July 8
Market Capitalization: HKD 69.625 billion
Group A Tail: 500 lots
Group B Head: 1,000 lots
Top Hammer: 49,846 lots
II. Company Fundamental Analysis
Momenta primarily has two types of businesses. One is providing mass-production vehicle solutions like urban NOA and highway NOA to automakers. The other is Robotaxi services, which currently contribute little revenue.
Based on sales volume for the twelve months ended February 28, 2026, the company ranks first among independent urban NOA solution providers globally, with a market share of 64.5%. As of the end of 2025, the company had secured design wins for 170 vehicle models, 68 of which have entered mass production, with installations exceeding 680,000 units. By the end of February 2026, design wins increased to 180 models, with installations exceeding 733,000 units.
The company has already collaborated with automakers like Mercedes-Benz, BMW, Audi, Toyota, Honda, and BYD. For the mass-production vehicle business, it first receives technology development fees. After a model officially enters mass production, it then charges licensing fees based on actual sales volume. As mass-production models increase, the proportion of licensing service revenue has risen from 3.1% in 2023 to 40.1% in 2025, improving the revenue structure.
From 2023 to 2025, the company's revenue was RMB 743 million, RMB 1.325 billion, and RMB 2.413 billion, respectively, with growth of 78.4% and 82.1% in 2024 and 2025, respectively. Gross margin improved from 17.5% to 71.6%.
The company is still incurring losses. Net losses for the same periods were RMB 2.570 billion, RMB 3.206 billion, and RMB 3.458 billion, which included significant fair value changes of preferred shares and financial liabilities. Excluding share-based payments, fair value changes, and listing expenses, adjusted losses narrowed from RMB 1.093 billion to RMB 303 million. Operating cash outflow also decreased from RMB 1.069 billion to RMB 281 million.
Risks mainly stem from three aspects. The autonomous driving industry is still affected by technological changes, accidents, and regulatory shifts. The top five customers contributed 62.6% of revenue in 2025. A design win for a vehicle model does not guarantee firm orders; projects may be delayed or canceled, and final revenue also depends on the actual sales volume of the corresponding model.
III. IPO Subscription Analysis and My Action
The specific capital allocation for this batch of 15 IPOs is posted in the [Xingqiu] community. Momenta's advantages are its clear industry position, fast revenue growth, and simultaneous improvement in the proportion of licensing revenue and gross margin. It's not just a Robotaxi story; at this stage, it already generates revenue from mass-production vehicle projects.
The downside is the valuation is not low. The company's market cap is close to HKD 70 billion, and it is still not profitable. It will need continued investment in R&D and Robotaxi. The weighted voting rights structure, customer concentration, and autonomous driving regulations will also suppress its long-term valuation.
Overall, Momenta's theme, growth, and offering structure are good. Its short-term appeal is higher than most IPOs in the same period, and the offering size is also substantial.
My Action: I will subscribe.
$MOMENTA-W(06880.HK)
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