Hesai Group Raises HK$605 Million Through Hong Kong IPO

Hesai Group, a holding company specializing in 3D LiDAR solutions, raised HK$605 million from the full exercise of its overallotment option in its Hong Kong IPO. The company operates through two segments: LiDAR and Gas Detection. Its products are used in passenger cars, commercial vehicles, and autonomous vehicles. Business is conducted in domestic and overseas markets.

Hesai Group, a leading provider of 3D LiDAR solutions, has successfully raised HK$605 million from the full exercise of its overallotment option in its Hong Kong Initial Public Offering (IPO). The company operates through two segments: LiDAR and Gas Detection, with products used in passenger cars, commercial vehicles, and autonomous vehicles. Business is conducted in both domestic and overseas markets.

Hesai Group, which is the world's largest supplier of automotive lidar sensors, had planned to issue up to 17 million shares at a maximum price of HK$228 per share. The company had secured an overallotment option to issue an additional 2,932,500 shares if demand proved strong. The subscription period opened on Monday and closed on Thursday, with the final pricing announced on Friday. The company's shares are scheduled to debut on the main board of the Hong Kong Stock Exchange on September 16.

The company's listing documents indicate that 10% of the offering will be allocated to Hong Kong public investors, while the remaining 90% will be directed at international investors. This dual primary listing in Hong Kong is part of a broader trend among Chinese automotive and EV companies seeking local capital. The company's growth story is closely tied to global investor enthusiasm for China's EV and tech sectors, with rapid revenue growth and profitability.

Hesai Group's Hong Kong IPO is part of a broader trend among Chinese automotive and EV companies seeking local capital. Chery Automobile, China's second-largest carmaker by volume, recently passed its listing hearing in Hong Kong and aims to complete the IPO by the third quarter. Other companies pursuing Hong Kong listings include Seres, Huawei Technologies' EV partner, and Avatr Technology, the electric-car unit of state-owned Changan Auto.

Hesai Group's dual listing in Hong Kong represents a strategic move to diversify its investor base while leveraging the growing global demand for lidar sensors in the autonomous driving and robotics sectors. The company's recent expanded production agreement with a leading U.S.-based robotaxi company, now valued at over $40 million, highlights its growing position in the autonomous vehicle technology market.

The company faces geopolitical headwinds, with the U.S. Department of Defense designating it a "Chinese Military Company." However, Hesai has stated that it does not sell products to military clients nor maintains military ties with any nation. The designation places Hesai among nearly 300 Chinese companies in the U.S. that face potential delisting risks. In its Hong Kong prospectus, Hesai warned investors that any delisting from Nasdaq could result in trading difficulties or financial losses for ADS holders.

With its proven technology, established client base, and expanding international footprint, Hesai is positioning itself as a leading player in the autonomous vehicle sensor market. Yet challenges remain, from navigating U.S.-China tensions to maintaining production and technological leadership in a highly competitive landscape. The upcoming Hong Kong listing provides the company with both capital and visibility to fuel its next phase of growth.