Shares of Alibaba-backed Robosense Know-how fell 2% on its Friday debut within the first new itemizing on the Hong Kong inventory alternate this yr.

Robosense, a Chinese language developer of laser imaging, detection and ranging (LiDAR) sensors for self-driving vehicles, introduced January that it had raised HK$985.12 million ($126.14 million) in its IPO by providing 22.9 million shares at HK$43 every.

About 20.61 million of the shares within the IPO had been initially allotted to the worldwide provide, which ended as much as be 1.28 instances subscribed.

In distinction, the general public provide acquired a cooler reception, with the preliminary providing of two.29 million shares solely 0.58 instances subscribed.

As such, 952,000 shares had been reallocated from the general public provide to the worldwide provide. One other 2.86 million shares had been additionally over-allocated to the worldwide provide, bringing it to 24.4 million shares.

The IPO’s cornerstone investor was state-owned enterprise Nanshan Strategic Rising Industries Funding, owned by the Nanshan district authorities.

Nanshan SEI will subscribe to 79.3% of the IPO shares, or about HK$781.2 million.

Most notably, the announcement additionally revealed that Cainiao, the logistics arm of tech big Alibaba, was Robosense’s greatest pre-IPO shareholder, with a stake of 10.46%

In a Dec. 27 announcement, RoboSense mentioned it plans to make use of round 45% of the IPO internet proceeds on analysis and improvement and group growth, in an effort to construct up its product pipeline.

One other 40% will probably be used to spice up the corporate’s gross sales and advertising and marketing efforts, whereas the remaining 15% will probably be used for basic working capital and exploring potential strategic partnerships or alliance alternatives.