Robot-themed movies date as far back as the 1920s, almost 100 years post the industrial revolution. Reality, though, has caught up much more slowly.

Now, they are as simple as your everyday carpet cleaners or as sophisticated as robotic arms in challenging environments such as underwater or below freezing point. With their increasing applications – thanks to the boom of Artificial Intelligence – comes the growing need for fundraising by companies along the supply chain of the robot ecosystem.

“More robotics companies have shown interest in going public in Hong Kong. Many robotics companies lack sufficient commercialization to meet the listing requirements of the A-share market and are in urgent need of funding given research and development is cash-burning.” said an ECM banker in the city. “Hong Kong is more open to companies that are loss-making.”

Two service robot makers, Pudu Technology and CloudMinds, are targeting valuations of as much as USD 1.8bn and USD 500m, respectively, for their Hong Kong IPOs, as reported by this news service. CloudMinds filed for a US IPO in 2019, though the deal failed to materialise amid tense China-US trade ties.

Agricultural automation robot manufacturer FJ Dynamics is exploring IPO venues including Hong Kong, this news service reported.

Within the robot ecosystem, autonomous car chip maker Black Sesame Technologies, valued at more than USD 2.2bn, filed last July a Hong Kong listing application sponsored by China International Capital Corporation (CICC) and Huatai International. The IPO is yet to happen and the company is still deliberating its next move, said two investors familiar with the company. The options may include a backdoor listing, the second investor said.

Auto-driving chip designer Horizon Robotics plans to jump on the IPO bandwagon targeting a valuation as high as USD 7bn, as reported. Two investors and two bankers expressed their interest in this unicorn given its advanced technologies, strong fundamentals and more than 35% market share in China. However, the hefty valuation may keep some investors away, said one investor.

Amid the economic downturn combined with elevated interest rates, loss-making robotics unicorns are less likely to attract investors, who would rather focus more on the more tangible consumer-related companies such as MIXUE, which sells tea beverages, a lawyer and a fourth banker said.

New robots on the block

Among the four recently listed robotics companies, the automated driving product provider iMotion’s [HKG:1274] stock has soared over 90% since listing December 2023, while robotics process automation company Newlink Technology [HKG:9600] has shed about 90%, and medical robot manufacturer MedBot [HKG: 2252] has lost 70%. Humanoid robot maker UBTECH Robotics [HKG:9880] has been largely unchanged since its December debut.

Top 10 robot-themed IPOs in Asia

Data: Dealogic

It’s worth noticing that iMotion and UBTECH just went public late last year, while the rest have been in the public markets since 2021. It may need a longer time to prove that newcomers have a more positive outlook than their earlier peers.

Out of the various segments in the robot universe, such as industrial robots, drones and automated guided vehicles, the humanoid robot is the rising star which shows enormous potential by applying generative AI. With the latest Google Sora, which can generate videos, and ChatGPT, a master of human languages, robots can finally develop human-like brains, the first investor said.

In Korea, Doosan Robotics [KRX: 454910] and Rainbow Robotics [KOSDAQ: 277810] have grown 53% and 466%, respectively, since their listings.

While US has the largest robot market worldwide, which is expected to reach USD 7.8bn this year, China isn’t far behind, with a projected market size of USD 6.8bn, of which service robotics is anticipated to contribute USD 5.4bn.

The market will likely grow at a compound annual growth rate (CAGR) of 7.18% between 2024 and 2028, according to Statista, a statistics portal for market data.

Such growth will hopefully help the world catch up faster on the dreams painted by robots-centred movies. Despite concerns about jobs lost to robots, humans may well make peace with the idea that “the world needs all kinds of minds” (Big Hero 6, 2014), including those of robots, while upskilling themselves in the meantime.