Direct Drive Tech Limited has opened its initial public offering with a plan to raise up to HKD 1.08 billion, or USD 137.7 million, before any over-allotment option is exercised. The company is offering 50 million H shares at HKD 21.60 each, with subscriptions running from September 21 to September 24. Trading on the Main Board of the Hong Kong Stock Exchange is expected to begin on September 29 under stock code 6731.
IPO Structure and Cornerstone Backing
The global offering comprises 2.5 million H shares for the Hong Kong public offer and 47.5 million H shares for the international offering, representing 5 percent and 95 percent respectively. Two state-backed cornerstone investors have agreed to subscribe for approximately HKD 472.0 million worth of offer shares at the offer price. This commitment accounts for about 43.54 percent of the H shares offered before the over-allotment option and includes JSC International, which has backed several technology listings.
Use of Proceeds and Listing Status
After underwriting commissions and expenses, the company estimates net proceeds of approximately HKD 982.5 million from the global offering. It will allocate about 50 percent to research and development, 20 percent to partnerships and sales, 20 percent to production capacity, and 10 percent to working capital. The company expects its market capitalisation at listing to exceed HKD 4 billion and qualifies as a commercialised company under Rule 18C.03.
Technology and Market Validation
Founded in 2020, Direct Drive Tech develops robotic drive systems that remove the need for reducers, the mechanical components commonly used to adjust motor speed and torque. The company first validates its direct drive technology through complete robots before supplying power modules to external customers at scale. According to Frost & Sullivan, it was the first and only company globally to have shipped more than five million direct drive robot power modules for consumer robots as of June 30, 2026.
Commercial Traction and Financial Growth
In the first half of 2026 alone, the company shipped about 5.8 million direct drive robot power modules used in more than 2.8 million robots, with revenue exceeding RMB 200 million. Frost & Sullivan also ranked it first by revenue in China's market for direct drive power modules used in consumer robots. Revenue grew from RMB 17.5 million in 2023 to RMB 79.8 million in 2024 and RMB 282 million in 2025, while gross margin reached 20.7 percent.
Product Portfolio and Strategic Positioning
The company has built a portfolio of wheeled-legged robots including Diablo, described as the world's first commercially launched two-wheeled-legged robot to use direct drive technology, along with Tita, Titatit, and the fully modular D1. These products have been deployed in scientific research, education, security inspection, data collection, and short-distance transportation. Direct Drive Tech's model creates a feedback loop in which complete robots serve as test beds, improving modules and lowering costs for broader commercial applications.
Hong Kong IPO Momentum
Direct Drive Tech is one of four mainland Chinese firms seeking to raise a combined HKD 14.35 billion through separate Hong Kong listings, according to exchange filings. Hong Kong IPO and secondary listing activity has strengthened this year, with deals raising about USD 45.8 billion so far compared with USD 24 billion in the same period last year. The robotics company contributes HKD 1.08 billion to this pipeline and is expected to start trading on September 29.
The listing will give investors exposure to a specialized segment of physical artificial intelligence hardware through direct drive robot systems. Rising revenue, improving gross margins, and an adjusted net loss margin that narrowed from more than 300 percent to 13.7 percent point to accelerating commercial adoption. With cornerstone support and proceeds directed toward research, production, and sales, Direct Drive Tech is positioned to test market appetite for advanced robotic components in Hong Kong.