Lidar maker Hesai to pour Hong Kong listing proceeds into expanding production

Hesai Group, the world’s largest maker of automotive lidar sensors, plans to double down on production capacity amid a bullish global outlook for intelligent cars after raising HK$4.2 billion (US$531 million) in a Hong Kong share offering.

Chief financial officer Andrew Fan said after the Shanghai-based company’s trading debut on Tuesday that the quality and affordability of Hesai’s light detection and ranging sensors – which employ laser beams to measure distances to objects – would effectively extend its reach to all carmakers amid rapid development of autonomous vehicles.

“Our lidar sensors, priced at about US$200 a unit, are no longer expensive for automotive companies as they assemble cars across all price ranges,” he said. “Most of the [listing] proceeds will be used to enhance our products’ competitiveness and build our new facilities in China and abroad.”

The CFO made the remarks after Hesai’s H shares jumped 10 per cent to HK$234 on the first day of trading, representing a premium of 1 per cent to the closing price of US$29.80 on the Nasdaq on Monday.

Hesai floated 19.55 million shares, including 2.55 million shares through the full exercise of the offer size adjustment option, at HK$212.80 apiece from its dual listing in Hong Kong. The fundraising is the largest homecoming listing by a US-traded Chinese company in four years.

“Hesai’s bullishness about demand for its products reflects the trend of the global automotive industry, where key players are striving to build smarter cars to save labour costs in the future,” said Zhou Ling, a hedge fund manager with Shanghai Shiva Investment. “Top makers of car components that are instrumental in driving the transition of the industry into electrification and automation will emerge to be winners in terms of earnings and growth pace.”

  

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