It raised $190 million, and it floated on Nasdaq

On February 9, 2023, Hesai Technology announced that it was officially listed on the NASDAQ Stock Market with the stock code "HSAI" and the initial public offering price was $19.0 per share. The public offering (IPO), which raised $190 million, was the largest by a Chinese company in the US market since Didi.

To mark the occasion, Li Yifan, co-founder, CEO and director of Hesai Technology, rang the opening bell. Mr. Li said in an interview that the company chose to list in the United States because it wanted more exposure on the global stage. "We want to be able to compete directly with our peers and be transparent in the broader market." He also revealed that He Sai is currently in talks with several global auto manufacturers about potential business cooperation opportunities. "As a public company, well-funded, with healthy margins and cash flows, it is extremely important that we make decisions for our clients," he said.

The offering was led by Goldman Sachs Group, Morgan Stanley and Credit Suisse Group under the ticker symbol HSAI. The Shanghai-based startup is said to have sold 10 million American Depositary Receipts (ADS) at $19 each. The company opened at $23.75 and closed at $21.05 in New York, up 11% on its first day of trading, giving it a market value of about $2.6 billion.

Over the past three years, the company's sales have grown steadily to nearly $112 million, and its net loss shrank to $23 million in the nine months ended Sept. 30, 2022, according to a filing with the U.S. Securities and Exchange Commission. Domestic and international giants such as Baidu, Xiaomi, Meituan and Bosch are among its strategic investors.

Hesai's successful listing has given confidence to Chinese companies seeking to raise capital in the US. Only 10 Chinese companies listed in New York last year, raising a total of US $376 million, the lowest in a decade, according to data compiled by Bloomberg.