Hesai jumps in Hong Kong debut after HK$4.2 billion listing
The company plans to use the proceeds to help lower the manufacturing costs of lidar systems
[HONG KONG] Hesai Group, the world’s largest maker of lidar sensors used in cars, rose in its Hong Kong trading debut after its HK$4.2 billion (S$691 million) listing in the city.
The shares climbed as much as 15 per cent to HK$244 on Tuesday (Sep 16), and traded at HK$229.80 at 10.36 am. During the listing, though the offering was priced at 6.7 per cent below the maximum the company was seeking, Hesai attracted big cornerstone investors, including Hillhouse Investment and Grab Holdings.
More broadly, Hesai is the first of several US-traded Chinese companies that are going public in Hong Kong this year, ensuring their ability to keep raising funds, after renewed delisting risks in America emerged. Hotel chain Atour Lifestyle Holdings and robotaxi firm Pony AI are other US-listed Chinese firms planning to list in the city.
The company plans to use the proceeds to help lower the manufacturing costs of lidar systems.
“We used to sell for US$50,000,” chief executive officer David Li said. “With the help of the proprietary technologies and the manufacturing, we are bringing it to US$200.”
Meanwhile, Hesai continues to benefit from carmakers increasingly adopting lidar technology to assist drivers in detecting potential dangers, including other cars and pedestrians, even in poor lighting conditions. Hesai’s American depositary receipts have doubled this year, and the company’s second-quarter revenue jumped 54 per cent from a year earlier, with growth accelerating from the preceding quarter.
But geopolitical risks persist. Hesai was among those added to a Pentagon blacklist of companies linked to China’s military in 2024, though the company has denied any ties with China’s military and has challenged its inclusion in the list. BLOOMBERG
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