Hesai Group IPO: The Risk Of Chinese IPOs

Summary

• Hesai Group, a Chinese company that manufactures LiDAR imaging systems, has released pricing and public details about its upcoming IPO.
• Hesai is the first Chinese company to launch an American IPO since the end of China’s zero-COVID policy, which will attract attention and concern from those wary of Chinese companies.
• The LiDAR market has huge growth potential, and Hesai is a leader in this field.
• Hesai’s financial numbers are mixed, with strong revenue growth on one side and problematic profitability and cash flow numbers on the other.
• There are some major risks, but investors should strongly consider this IPO given its low valuation compared to competitors.

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Chinese LiDAR developer Hesai Group (NASDAQ:HSAI) has released pricing details about its upcoming IPO. According to MarketWatch, "it plans to sell 9 million American depositary shares in an initial public offering, with each ADS representing a single Class B

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.