Hesai Group, a developer of sensor technologies used in self-driving cars, has raised US$190 million ($251.7 million) in an initial public offering, the largest by a Chinese issuer in the US market since the crash of Didi Global Inc. in 2021.
The Shanghai-based startup sold 10 million American depositary receipts for US$19 each, according to a statement Thursday. The company had marketed 9 million shares for US$17 to US$19 apiece. At the IPO price, Hesai has a market value of about US$2.4 billion.
Hesai’s listing marks a potential comeback of Chinese companies seeking to raise capital in the US, joining two other firms that have already launched IPOs this year. Delisting risk for this group has eased significantly after Washington and Beijing made progress resolving an audit dispute, with market sentiment turning more bullish amid China’s reopening bets.
The US IPO market was nearly shut for China firms since Beijing forced Didi to delist shortly after its US$4.4 billion New York debut in 2021. Only 10 Chinese issuers went public in New York last year, raising a total of US$376 million, the smallest amount in a decade, according to data compiled by Bloomberg.
In contrast, this year has started on a high note, with two firms including Quantasing Group Inc. pricing new listings, while US$1.4 billion worth of additional share sales took place, led by iQiyi Inc. and Bilibili Inc. among others, data show.
Hesai’s sales have grown steadily over the past three years to almost US$112 million with its net loss shrinking to US$23 million for the nine months ended Sept. 30, according to its filings with the US Securities and Exchange Commission. Domestic tech majors Baidu Inc., Xiaomi Corp. and Meituan are among its strategic investors, as well as German engineering conglomerate Robert Bosch GmbH.
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The offering is being led by Goldman Sachs Group Inc., Morgan Stanley and Credit Suisse Group AG. The shares are expected to begin trading Thursday on the Nasdaq Stock Market under the symbol HSAI.
