China's Hesai rises in Hong Kong share debut as lidar-sensor maker raises US$531 million

Company Overview - Hesai Group is the world's largest supplier of lidar sensors and recently debuted on the Hong Kong stock exchange under the code 2525, with shares opening at HK$229.20, a 7.7% premium over the offer price of HK$212.80 [1] Financial Performance - The company raised approximately HK$4.16 billion (US$531 million) from its secondary listing by selling 19.55 million shares, with 90% allocated to international entities and the remainder to Hong Kong retail investors [2] - The public tranche was oversubscribed by nearly 168.65 times, while the international tranche saw demand of about 14.09 times the available shares [3] Strategic Partnerships - Hesai attracted six cornerstone investors, including HHLR Advisors, Taikang Life, and WT Asset Management, who collectively subscribed to US$148 million worth of shares, agreeing to hold them for at least six months post-listing [4] - The company announced an expansion of its production agreement with a US-based robotaxi company, becoming the exclusive supplier of both long-range and short-range lidars, with the deal valued at over US$40 million and covering deliveries through the end of 2026 [5] Market Position - Hesai has been the top global revenue generator among lidar suppliers for three consecutive years, from 2022 to 2024 [5] - The company's Nasdaq-listed shares closed more than 2% higher at US$28.57 on the day prior to the Hong Kong listing [6] Regulatory Environment - The company faces increased pressure due to ongoing US-China tensions, having been designated a "Chinese Military Company" by the US Department of Defense last year, although it has stated it does not sell products to the military or maintain military ties [7]