Chinese Firm Hesai Group To Raise USD 171M in IPO

According to regulatory filings, Chinese sensor maker Hesai Group intends to raise up to $171 million in a US initial public offering (IPO), the first major deal by a Chinese company since the country's borders reopened early last month.

Hesai, based in Shanghai, will issue up to 9 million American depositary shares (ADS) at a price ranging from $17 to $19 per share.

While QuantaSing Group, a Chinese online education firm, raised $40.6 million in a U.S. IPO on Jan. 25, the Hesai deal is the largest fund-raising by a Chinese firm in New York in at least a year.

It is also one of only a few major U.S. listings by Chinese companies since Beijing tightened restrictions on overseas share sales in July 2021.

According to Refinitiv data, Chinese companies raised nearly $230 million in U.S. listings in 2022, a massive drop from $12.85 billion the previous year.

After the US accounting watchdog announced in mid-December that it now has full access to inspect and investigate firms in China for the first time, the likelihood of Chinese companies being delisted in the US over accounting issues has decreased.

However, companies and advisors are still waiting for China's Securities Regulatory Commission (CSRC) to publish its final rules governing Chinese companies listing offshore.

Dealmakers are optimistic that with the threat of delisting reduced and the country's borders open, Chinese companies will resume raising capital in the United States.

According to the company's website, Hesai has raised more than $500 million to date. Xiaomi Corp, Meituan, Bosch, and Baidu Inc are among its investors.

Zeekr, the electric car brand of Chinese automaker Geely Automobile Holdings, filed for a U.S. initial public offering in December.