Hesai Group (<NASDAQ: HSAI>), a leading provider of three-dimensional lidar solutions, is expanding its global presence. The company revealed plans for a significant global share offering, encompassing a Hong Kong public offering and an international offering. This move will see Hesai‘s Class B ordinary shares listed on the Main Board of the Hong Kong Stock Exchange under the stock code “2525.” Its American depositary shares (ADSs) will continue trading on the Nasdaq Global Select Market.
The offering includes an initial 17 million Class B ordinary shares, with approximately 10% allocated to the Hong Kong public offering and the remaining 90% for the international offering. Hesai has included options to increase the offering size to meet market demand. The company may issue up to an additional 2.55 million shares to cover oversubscription. International underwriters also hold an over-allotment option for a similar number of shares.
The pricing mechanism will ensure a competitive offering. The Hong Kong offer price will not exceed HK$228.00 per share, equivalent to approximately US$29.04 based on a specific exchange rate. The international offer price may be set higher or at the same level. The final Hong Kong price will be the lower of the two.
Several prominent investors have committed to the offering. Hesai secured cornerstone investments totaling approximately US$148 million from investors including HHLR Advisors (part of Hillhouse Group), Taikang Life, WT Asset Management, Grab, Hongda Group, and Commando Global Fund. These investments represent a substantial portion of the initial offering.
Hesai intends to utilize the proceeds from the offering to further its growth objectives. The company plans to invest significantly in research and development, bolster its manufacturing capabilities, and pursue strategic business development initiatives to accelerate expansion. Working capital and general corporate purposes will also benefit from the funding.
Several investment banks are involved in facilitating the offering. China International Capital Corporation Hong Kong Securities Limited, Guotai Junan Capital Limited, and CMB International Capital Limited serve as Joint Sponsors. A broader group of banks acts as Joint Global Coordinators, Joint Bookrunners, and Joint Lead Managers.
The international offering is being made through a preliminary prospectus supplement and accompanying prospectus filed with the U.S. Securities and Exchange Commission (<SEC>). The offering is contingent on market conditions and there is no guarantee of completion or final size.
Hesai, with offices in Shanghai, Palo Alto, and Stuttgart, serves customers across over 40 countries. Its lidar technology finds applications in various sectors, including automotive (ADAS and autonomous driving), robotics, and last-mile delivery. The company’s integrated approach to R&D, manufacturing, and design allows for rapid product innovation and cost-effectiveness.
The company’s head of capital markets, Yuanting “YT” Shi, emphasized the strategic importance of this expansion. The dual listing represents a significant step in Hesai‘s global strategy and will provide it with access to a broader investor base. The company’s success is built on its strong R&D capabilities and seamless integration of manufacturing and design.
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