Chinese LiDAR maker Hesai debuts on Nasdaq - PingWest

Chinese LiDAR maker Hesai debuts on Nasdaq

Chinese LiDAR maker Hesai debuts on Nasdaq

February 10, 2023 1:24 am

Self-driving car sensor technology developer Hesai Group officially listed on the Nasdaq on Thursday, the largest US market listing by a Chinese issuer in nearly two years.

Hesai, which now trades under the symbol HSAI, raised $190 million by selling 10 million American depositary receipts at $19 each. Based on the IPO price, its market capitalization is approximately $2.4 billion.

According to the company, 25% of the net proceeds from the IPO will be used to invest in its manufacturing capabilities and 35% in research and development, including the development of its next-generation ASICs, as well as further investments in software solutions.

Founded in 2014, the Shanghai-based company makes LiDAR sensors for use in autonomous vehicles and other robotics projects. Its top customers include Baidu, Aurora, Pony.ai, AutoX, WeRide, Nuro, and Neolix. 

Management is headed by co-founder and CEO Yifan Li, who has been with the firm since its inception and was previously the principal engineer at Western Digital. Among the company's backers are tech heavyweights like Baidu, Xiaomi, Meituan, and Germany's Robert Bosch.

As of September 30, 2022, Hesai had $105.5 million in cash, $120 million in total liabilities, and $129 million in negative free cash flow.

The global market for LiDAR products was an estimated $1.8 billion in 2021 and is forecast to reach $4.2 billion by 2030, according to a 2022 market research report by Grand View Research. Major competitive or other industry participants include Velodyne, Luminar, Ouster, and more.

The large IPO of Hesai is a huge boost for Chinese companies looking to raise capital in the US. The US IPO market was nearly shut for Chinese companies since July 2021 due to tightened scrutiny of overseas listings by Chinese authorities and the audit dispute between the two countries. According to data compiled by Bloomberg, only 10 Chinese issuers went public in New York last year, raising a total of $376 million, the smallest amount in a decade.