Hesai Technology Co, which develops sensor technologies used in self-driving cars, has raised $190 million in an initial public offering (IPO) in the US, making it the largest IPO made by a Chinese firm since ride-hailing giant Didi’s $4.4-billion listing in June 2021, Bloomberg reported citing people familiar with the matter.
Prior to Didi’s delisting in May 2022, Chinese companies had been making a beeline for US stock exchanges — considered one of the most liquid stock exchanges in the world.
Hesai is said to have offered 9 million shares priced between $17 to $19 per share, according to a filing with the Nasaq on February 2. Bloomberg reported that the firm sold 10 million American depositary shares (ADS) on Wednesday, ahead of its trading on Thursday.
The news comes shortly after QuantaSing Group, a Chinese online learning service provider, raised about $41 million in its US IPO January 23, after pricing the deal at the middle of the range.
The recent IPOs of Chinese companies point to a potential comeback in the US stock markets. In December 2022, the Public Company Accounting Oversight Board (PCAOB) announced that the firm has gained complete access to inspect and investigate registered public accounting firms headquartered in mainland China and Hong Kong.
The announcement comes as a significant progress that could prevent the delisting of over 250 companies by as early as 2024.
As of January 9, a total of 252 Chinese companies are currently listed on the US exchanges with a total market capitalisation of around $1 trillion, according to the US-China Economic and Security Review Commission, an independent agency of the US government to monitor the security implications of bilateral trade and economic relationships between the two conutries.
The market capitalisation is up 28.9% compared with $775.6 billion in Q3 2022 when 262 Chinese firms were listed on the US bourses, per the agency.