Ride-Hailing Operator Chenqi Drops on Hong Kong Debut

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Chenqi, also known as Ruqi Mobility, offered more than 30 million shares at HK$35 each in its IPO, raising a net HK$969 million

Chenqi Technology Ltd., operator of the ride-sharing platform OnTime, closed its first trading day in Hong Kong 3.14% below the offering price, after raising $124 million in its initial public offering.

Chenqi’s shares closed at HK$33.9 ($4.3) each, recovering from a 14% drop during its debut on the Hong Kong Stock Exchange. The company’s market cap stood at HK$6.92 billion.

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Chenqi Technology Ltd.'s shares closed 3.14% below the offering price on its first trading day in Hong Kong, raising $124 million in its IPO.
The company plans to invest the funds in autonomous driving, Robotaxi services, R&D, brand building, and market expansion.
Established by Tencent and GAC in 2019, Chenqi is a leading ride-hailing service in the Greater Bay Area, with significant growth and expansion in Robotaxi services.

AI generated, for reference only

Who’s Who

Chenqi Technology Ltd.: Chenqi Technology Ltd., also known as Ruqi Mobility, operates the ride-sharing platform OnTime. It closed its first trading day in Hong Kong 3.14% below its offering price, raising $124 million in its IPO. Founded in 2019 by Tencent and GAC Group, Chenqi focuses on the Greater Bay Area and is a pioneer in Robotaxi commercialization in China. It raised funds to promote autonomous driving, Robotaxi services, and market expansion, despite widening net losses to 693 million yuan in 2023.

Guangzhou Automobile Industry Group Co. Ltd.: Guangzhou Automobile Industry Group Co. Ltd. (GAC) is one of the cornerstone investors in Chenqi Technology Ltd.'s IPO, acquiring a significant portion of the offered shares. GAC is a state-backed automaker and co-founded Chenqi in 2019 along with Tencent Holdings Ltd. The company focuses on the automotive sector and has invested in autonomous driving and ride-hailing services through its stake in Chenqi.

Pony.ai Inc.: Pony.ai Inc. is an autonomous driving company that is one of the four cornerstone investors in Chenqi Technology Ltd.'s IPO. It acquired a portion of the shares during Chenqi's initial public offering.

WeRide Corp.: WeRide Corp. is an autonomous driving company and one of the cornerstone investors in Chenqi Technology Ltd.'s IPO. Along with three other cornerstone investors, WeRide Corp. acquired 77% of the shares offered by Chenqi during its initial public offering.

Didi Global Inc.: Didi Global Inc. is mentioned twice in the article. It ranks first in the Greater Bay Area’s ride-hailing market, ahead of Chenqi Technology Ltd. Its self-driving unit, Voyager Group Ltd., was one of the cornerstone investors, acquiring 77% of Chenqi’s IPO shares.

Shanghai Voicecomm Information Technology Co. Ltd.: Shanghai Voicecomm Information Technology Co. Ltd., a Baidu Inc.-backed artificial intelligence company, debuted on the Hong Kong Stock Exchange trading below its offering price. It ended its first trading day 11.2% lower than its offering price.

Tencent Holdings Ltd.: Tencent Holdings Ltd., co-founder of Chenqi Technology Ltd., is a prominent Chinese multinational conglomerate primarily focused on various internet-related services and products, entertainment, AI, and technology globally. Established in 1998, Tencent is one of the world's largest gaming and social media companies. It has significantly contributed to Chenqi's foundation alongside state-backed automaker GAC Group.

Geely Holding Group: Geely Holding Group is mentioned in the article as backing the ride-hailing service provider Caocao Inc., which is awaiting regulatory clearance for its IPO application in Hong Kong.

Dida Inc.: Dida Inc. is a ride-hailing service provider that recently launched an IPO in Hong Kong to raise up to HK$273.7 million ($35.06 million). The company is among several ride-hailing firms seeking share sales in Hong Kong.

Caocao Mobility: Caocao Mobility, backed by Geely, is a ride-hailing service provider in Hong Kong. The company is waiting for regulatory clearance for its IPO application. This move comes as several ride-hailing firms, including Dida Inc. and others, are seeking to raise funds through share sales in Hong Kong.

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What Happened When

April 2022：: Chenqi launched the world’s first open operations platform for Robotaxi commercialization.

October 2022：: Chenqi introduced a hybrid of chauffeured and Robotaxi services in Guangzhou.

By the end of 2023：: Chenqi's Robotaxi service accumulated 20,000 operational hours, covered 545 stations, and completed 450,000 kilometers in trial operations.

Late June 2024：: Chenqi passed its listing hearing.

July 10, 2024：: Shanghai Voicecomm Information Technology Co. Ltd debuted on the Hong Kong bourse, ending the day 11.2% lower than its offering price.