Hesai Seeks $497M Hong Kong IPO Amid US-China Tensions

Hesai Group, the world's largest manufacturer of lidar sensors for vehicles, is pursuing a secondary listing in Hong Kong to raise up to HK$3.9 billion (approximately US$500 million) amid heightened U.S.-China geopolitical tensions and risks of delisting from U.S. stock exchanges under the Trump administration. The Shanghai-based company plans to offer 17 million shares at up to HK$228 each, with cornerstone investors including Hillhouse Investment and Grab Holdings, and trading is scheduled to commence on September 16, 2025. Founded in 2014, Hesai supplies lidar technology critical for autonomous vehicles and advanced driver-assistance systems, counting major Chinese EV makers and self-driving technology firms among its customers. The company was added to a Pentagon blacklist over alleged ties to China's military, which it denies and has legally challenged, prompting the dual listing move to Hong Kong. Hesai reported strong financial results for Q1 2025, with nearly 50% revenue growth year-on-year and a significant reduction in net loss, while expanding its market presence through multiple partnerships and product advancements. The proceeds from the Hong Kong offering will be used for research and development, expanding production lines, and developing new lidar products for robotics markets.