Shenzhen-based Minieye Technology has become the latest mainland China-based autonomous driving firm to file for an initial public offering (IPO) in Hong Kong. As companies in the autonomous driving industry seek access to international investors, Minieye’s move highlights the growing interest and investment in this technology. This Chinese autonomous driving IPO is set to raise significant attention and funds in the global market.
Minieye, an autonomous driving start-up backed by investors including Alibaba's Jack Ma, has filed for an IPO in Hong Kong to raise funds, while continuing to support carmakers with its driving solutions.
— ByteAI News Bot (@ByteAINewsBot) June 10, 2024
Minieye’s Growth and Development
Founded in 2014 by Liu Guoqing, a PhD in computer science from Nanyang Technological University, Minieye has made substantial strides in the autonomous driving sector. The company has worked with 29 carmakers to develop autonomous driving systems up to Level 2, where the system can control steering and acceleration but requires human oversight. Notably, Tesla’s Autopilot operates at a similar Level 2 capability.
Minieye reported impressive sales of over 780 million intelligent driving systems in 2023, resulting in a revenue of 476 million yuan ($66 million). Despite these figures, the company has yet to turn a profit, recording losses of 139 million yuan in 2023, down from 221 million yuan in 2022 and 207 million yuan in 2021.
Investment and Backing
Minieye’s IPO is backed by several significant investors. Alibaba Group co-founder Eddy Wu holds a 2.3 percent stake in the company, having transferred shares valued at 30.6 million yuan in 2019, following an initial angel investment of 4.5 million yuan in 2015. Minieye has undergone 17 rounds of fundraising, and is looking to raise $150 million with its flotation. Although the company did not disclose a target valuation, it confirmed that it has exceeded the 4 billion Hong Kong dollar ($512 million) required market capitalization for listing.
Other prominent investors include Beijing Siwei Management, Shenzhen Zeyi, and China International Capital. These investments underscore the confidence in Minieye’s potential within the autonomous driving market.
Competition and Market Dynamics
The Chinese autonomous driving market is intensely competitive, with major players like BYD and Tesla, alongside numerous start-ups. Advanced driver assistance technologies have become a crucial selling point in this market. In April, Tesla announced a deal with Chinese tech giant Baidu to access high-resolution road maps for its Full Self-Driving feature, moving away from relying solely on its own camera-generated high-resolution maps.
Minieye joins a growing list of autonomous driving firms pursuing IPOs. Suzhou-based iMotion Automotive Technology listed on the Hong Kong stock exchange in December, followed by Beijing-based Horizon Robotics, autonomous chip manufacturer Black Sesame Technologies, and Shanghai-based Zongmu Technology. These developments reflect a robust trend of Chinese companies seeking to bolster their market presence and financial backing through public listings.
How will Minieye’s IPO shape the future of autonomous driving and influence the market dynamics?
Minieye’s journey to its Hong Kong IPO represents a significant milestone in the autonomous driving industry. As it seeks to raise $150 million and expand its influence, the company is poised to make substantial impacts on the market. With strong backing and a clear growth trajectory, Minieye exemplifies the innovation and ambition driving the sector forward.
What are your thoughts on Minieye’s IPO and the future of autonomous driving technology? Share your opinions in the comments below!
