AsianFin -- Hesai Group, the world’s largest supplier of automotive lidar sensors, is seeking to raise up to HK$3.9 billion (US$500 million) through a dual primary listing in Hong Kong, joining a wave of Chinese electric vehicle (EV) makers and supply-chain firms tapping into investor interest in the country’s burgeoning technology sector.
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According to its listing documents, Hesai plans to issue up to 17 million shares at a maximum price of HK$228 per share. Ten per cent of the offering will be allocated to Hong Kong public investors, with the remaining 90 per cent directed at international investors. The company has also secured an overallotment option to issue an additional 2,932,500 shares if demand proves strong. The subscription period opened on Monday and closes on Thursday, with the final pricing to be announced on Friday. Hesai’s shares are scheduled to debut on the main board of the Hong Kong Stock Exchange on September 16.
Founded in Shanghai in 2014, Hesai develops and sells lidar sensors—short for light detection and ranging—that use laser technology to measure distances to objects. These sensors play a key role in autonomous vehicles, advanced driver-assistance systems (ADAS), and robotics. Hesai counts leading Chinese EV manufacturers such as Li Auto and Nio among its clients, as well as autonomous driving firms including Baidu Apollo, WeRide, and Pony.ai.
Hesai has also made inroads internationally. In 2024, roughly 28 per cent of its revenues were generated from exports, primarily to North America, Europe, and the Asia-Pacific region.
The company has seen rapid growth in recent years. In the second quarter of 2025, Hesai reported revenue of 706 million yuan (US$99 million), representing a 54 per cent year-on-year increase. Importantly, Hesai turned profitable during the period, posting net income of 44.1 million yuan. According to the company’s chief financial officer, Andrew Fan, annual profits are expected to surge 14-fold this year, fueled by expansion into European markets.
Hesai’s growth story is closely tied to global investor enthusiasm for China’s EV and tech sectors. The company initially listed on Nasdaq in 2023 at US$19 per American Depositary Share (ADS), and its shares closed last Friday at US$26.50.
However, Hesai faces geopolitical headwinds. Last year, the U.S. Department of Defense designated it a “Chinese Military Company,” though 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.
Last month, Hesai received approval from China’s securities regulator to pursue a public listing in Hong Kong, as the city’s IPO market experiences a surge. In the first eight months of 2025, Hong Kong saw 59 new listings—a 37 per cent increase over the same period last year—with total funds raised reaching HK$134.5 billion, up an impressive 579 per cent year-on-year.
Hesai’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’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. As the company balances rapid revenue growth with geopolitical and market pressures, investors will closely watch its performance in both Hong Kong and international markets, particularly as the EV and AI-driven mobility markets continue to expand globally.
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.
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