(Yicai) June 28 -- The operator of Tencent-backed ride-hailing platform OnTime, also known as Ruqi Mobility, plans to raise up to HKD1.4 billion (USD179.3 million) in its initial public offering and will start trading on the Hong Kong Stock Exchange on July 10.

Chengqi Technology will issue about 30 million shares, including three million in Hong Kong and the remainder internationally, the Guangzhou-based company backed by auto giant GAC Group and the owner of WeChat wrote in a bourse filing today. The price per share goes between HKD34 and HKD45.4 (USD4 and USD6).

The southern ride-hailing platform expects to use 40 percent of the IPO proceeds to develop its autonomous driving and robotaxi businesses, according to its first prospectus filed last August. A fifth of the total will be used to upgrade mobility services and operating efficiency and a similar share will be spent on increasing market share. The rest will be earmarked for investments, mergers and acquisitions, as well as general purposes.

The updated prospectus released in March shows that Chengqi recorded a net loss of CNY692.8 million (USD95.3 million) last year, widening by 11 percent from 2022, on a 58 percent increase in revenue to CNY2.2 billion (USD302.7 million). Due to high expenses, the firm may remain unprofitable for the next three years, it added.

Guangzhou-based GAC and autopilot startup Pony.AI are some of Chengqi's cornerstone investors, subscribing to 35 percent and 5 percent of the new equity, respectively, according to the latest filing. Moreover, market leader Didi Global's autonomous driving arm Voyager will subscribe to 23 percent of the issuance while another autopilot startup WeRide will have 15 percent.

Chengqi was jointly founded by GAC and Tencent in 2019. It mostly operates in the Guangdong-Hong Kong-Macao Greater Bay Area. GAC currently has about 35 percent of the startup's equity while Tencent holds 18 percent. Guangzhou Public Transport and Pony.AI own 6 percent and 5 percent, respectively, before the IPO, per the prospectus.

Editor: Emmi Laine