Hesai Group surged 8% in Hong Kong’s grey market trading. The company, which is the world’s largest maker of lidar sensors for vehicles, priced its Hong Kong initial public offering at HK$212.80 per share. The company makes its trading debut on Sept. 16.

The three-dimensional light detection and ranging product developer considered the closing price per ADS on the Nasdaq on Sept. 10 in pricing the offering, the company said in its latest filing.

The offer size adjustment option was exercised in full, with the company to issue and allot 2,550,000 additional shares, representing 15% of the total number of offer shares initially available under the total offering at the offer price.

Hesai Group expects to raise HK$4.16 billion in gross proceeds, taking into account the full exercise of the adjustment option and assuming the overallotment option is not exercised.

Since its foundation in 2014, Hesai has grown rapidly to become a top supplier of lidars — short for light detection and ranging — a remote sensing technology that helps vehicles navigate their surroundings.

But Hesai, which raised $192 million in its US initial public offering in 2023, was added to a Pentagon blacklist of companies linked to China’s military last year. The company has denied any ties with the country’s military and has challenged its inclusion in the list.

Proceeds from the Hong Kong offering will go toward purposes including research and development, developing lidar products for the robotics markets and building new production lines.

China International Capital Corp., Guotai Junan International Holdings Ltd. and CMB International are joint sponsors of Hesai’s Hong Kong listing.