Doubting the impact of the new IPO regulations, Hesai Technologies willingly withdrew their listing application.

According to the announcement of Shanghai Stock Exchange, the review of the initial public offering (IPO) application of Hesai Technology has been terminated due to the withdrawal of the IPO application or withdrawal of the recommendation by the sponsor.

On January 7th of this year, Shanghai Stock Exchange accepted the first-time application of Hesai Technology, which planned to be listed on the Sci-Tech Innovation Board with a maximum public offering of 63.6 million shares and fundraising of 2 billion yuan, with Huatai United Securities as the sponsor. Founded in 2013, Hesai Technology is currently one of the enterprises with the highest market share in the domestic LiDAR market. Its products are widely used in the fields of Robotaxi and V2X. The IPO of Hesai Technology was once considered to challenge the first domestic LiDAR stock in China. With the termination of the review, Hesai Technology’s IPO is now terminated.

According to insiders, Hesai Technology actively withdrew its IPO application mainly due to the new IPO regulations released in February this year. The new regulations require shareholders who have acquired shares within 12 months before submitting the application (previously 6 months) to be locked up for three years.

In late August 2020, Hesai Technology had increased its capital and introduced several new shareholders. The new shareholders will also be affected by the new regulations. Therefore, Hesai Technology actively withdrew its IPO application and plans to resubmit it after six months in order to circumvent the rules.

Source: Shanghai Stock Exchange

This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.