Direct Drive Tech IPO: $138M for Advanced Robot Actuation

Direct Drive Tech, a pioneer in advanced robot drive systems, is making its public market debut with a substantial initial public offering (IPO) on the Hong Kong Stock Exchange. The company aims to raise approximately $137.7 million by offering 50 million H shares, with pricing set at HKD 21.60 ($2.8) per share. This move signals investor interest in the specialized niche of physical artificial intelligence hardware, specifically components that enable more responsive and precise robotic movement.

The offering, which commenced order-taking on September 21 and concludes on September 24, includes a Hong Kong public offering of 2.5 million shares and an international tranche of 47.5 million shares. A significant portion of the funding is already secured through cornerstone investors, including JSC International, a notable participant in previous tech listings such as those by Z.ai, Horizon Robotics, and OmniVision Group. These cornerstone subscriptions total $60.2 million, underscoring confidence in Direct Drive Tech's innovative approach.

Founded in 2020, Direct Drive Tech is revolutionizing robot locomotion by developing drive systems that bypass the need for traditional reducers. These mechanical components, long a staple in motor systems, often introduce inefficiencies, limit dynamic performance, and add complexity. By enabling direct motor-to-load engagement, Direct Drive Tech's technology promises enhanced speed, superior precision, reduced energy consumption, and simplified maintenance – critical attributes for the next generation of intelligent, embodied systems and humanoid robots.

The company's strategic development path involved creating its own robots, including wheeled-legged models, as sophisticated testbeds for its direct drive technology. Initial deployments in demanding industrial inspection and specialized operational environments allowed for rigorous refinement and validation. This iterative process, coupled with achieving stringent reliability benchmarks, paved the way for the company to scale production of its direct drive power modules to external clients. This scaling has not only driven down unit costs but also bolstered the cost-effectiveness of its own robotic products, creating a virtuous cycle of innovation and market penetration.

Direct Drive Tech's commercialization efforts have yielded impressive results. According to Frost & Sullivan, by June 30, 2026, the company had shipped over 5 million direct drive robot power modules for consumer robots, making it the sole global entity to achieve this milestone. In the first half of 2026 alone, shipments reached approximately 5.8 million modules, integrated into more than 2.8 million robots across diverse applications. The firm also holds the top revenue position in China's direct drive power module market for consumer robots.

Financial performance reflects this rapid expansion. Revenue surged from RMB 17.5 million ($2.6 million) in 2023 to RMB 79.8 million ($11.9 million) in 2024 and RMB 282 million ($42.0 million) in 2025, marking year-over-year growth rates of 355% and 253%, respectively. First-half 2026 revenue already surpassed RMB 200 million ($29.8 million). Gross margins improved from 13.5% in 2023 to 20.7% by mid-2026, while adjusted net loss margins significantly narrowed from over 300% to 13.7%, indicating a strong trajectory toward profitability.

Prior to this IPO, Direct Drive Tech secured backing from a roster of prominent investors, including Shunxi Fund, Lenovo Capital and Incubator Group, Green Pine Capital Partners, MiraclePlus, 5Y Capital, and SenseCapital, alongside Horizon Robotics. The company's expansion into complete robotic solutions, particularly its advanced wheeled-legged robots like Diablo, Tita, and Titatit, further solidifies its position as a key innovator in the robotics sector.