Hesai Technology Surges 10% in Hong Kong Trading Debut, Marking Potential Revival of US-China Cross-Listings
Chinese lidar manufacturer Hesai Technology Co. jumped as much as 10.4% in its Hong Kong trading debut, signaling renewed investor appetite for Chinese companies seeking dual listings amid a two-year lull in such offerings.
The Shanghai-based company's shares opened at HK 235 per share,valuing the firm at HK 36 billion (US$4.6 billion) and marking a strong start for what could be the first major US-listed Chinese company to complete a Hong Kong secondary listing since the cross-border listing channel effectively froze two years ago.
Hesai's public offering was oversubscribed 168.65 times, with the company raising approximately HK 4 billion(US$ 513 million) in net proceeds from the sale of 19.55 million shares priced at HK 212.80 each. The successful debut comes as the company reported its first profitable quarter in Q2 2025, posting GAAP net income of 44.1 million yuan (US$ 6.1 million) compared to a 72.1 million yuan loss in the same period last year.
Strong Market Reception Signals Investor Confidence
The enthusiastic market response extended beyond Hong Kong, with Hesai's US-listed shares gaining 4.31% to close at $29.8 ahead of the Hong Kong debut. The public offering portion attracted approximately 93,400 valid applications, with about 47,200 successful allocations representing a 30% subscription rate for minimum lots.
International institutional investors also showed strong demand, with the international tranche oversubscribed 14.09 times. The allocation split 90% to institutional investors and 10% to retail participants, reflecting standard Hong Kong IPO practice for such offerings.
Capital Deployment Strategy Focuses on Technology and Production
Hesai plans to deploy the raised capital across six strategic areas, with the largest portion allocated to research and development initiatives. Approximately 30% will fund product development and commercialization efforts, while 25% will expand production capacity to meet growing market demand.
The company will dedicate 20% of proceeds to optimizing ASIC technology pathways and other critical components to enhance detection performance and achieve product miniaturization. An additional 10% will streamline production processes and increase automation levels in testing procedures, with 5% earmarked for business development and market expansion.
Market Leadership Position Reinforced by Major Contract Win
Hesai's market position received validation through a significant contract with a leading US robotaxi company worth over $40 million, scheduled for delivery by end-2026. The agreement designates Hesai as the sole supplier for both long-range and short-range lidar products, reinforcing the company's technological capabilities and manufacturing scale.
According to Yole Group's 2025 Global Automotive Lidar Market Report, Hesai maintained its dominant position in the global L4 autonomous driving lidar market with a 61% share in 2024, marking its fourth consecutive year as market leader. The company's gross margin stood at 42.5% in Q2 2025, down from 45.1% year-over-year but showing sequential improvement, while R&D expenses remained relatively stable at 199.2 million yuan, up just 0.3% from the previous year.