The IPO Buzz: Hesai (HSAI) Jumps 25 Percent in NASDAQ Debut

Like a rabbit: Hesai Group (HSAI) American Depositary Shares (ADS) shot up 25 percent to open at $23.75 – up $4.75 from their $19.00 IPO price – at 11:19 a.m. EST today (Thursday, Feb. 9, 2023) on the NASDAQ. Opening volume was 1,328,799 shares, NASDAQ records show. The Chinese LiDAR company’s U.S. debut coincided with the last day of the Chinese New Year festival to celebrate the Year of the Rabbit.  By 11:43 a.m. EST, Hesai’s ADS were trading at $21.31, up about 12.2 percent on volume of more than 3 million shares.

Chinese LiDAR company Hesai Group (HSAI) priced its IPO at $19.00 – the high end of its $17.00-to-$19.00 range – and upsized the deal to 10.0 million American Depositary Shares – up from 9.0 million ADS in the prospectus – to raise $190 million on Wednesday night (Feb. 8, 2023). Hesai’s ADS are expected to start trading on the NASDAQ today – Thursday, Feb. 9 – the last day of the Chinese New Year festival to celebrate the Year of the Rabbit. As Bloomberg reported, this is the biggest Chinese U.S. IPO since Didi.

Goldman Sachs, Morgan Stanley, Credit Suisse and Huatai Securities are the joint book-runners.

Hesai’s IPO attracted interest at launch from IPO investors who like the LiDAR sector, although some noted that the Shanghai-based company is not yet profitable.

Xiaomi, the Chinese smartphone maker, is among Hesai’s principal shareholders.

Stay tuned.

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