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