Hesai Group (NASDAQ: HSAI), the world's largest LiDAR sensor manufacturer, saw its stock surge 6.08% in pre-market trading on Monday following the announcement of its secondary listing offering in Hong Kong. The company aims to raise up to HK$3.88 billion (US$500 million) through the issuance of 17 million class B shares.

According to the company's prospectus, Hesai plans to offer 15.3 million class B ordinary shares in an international offering and 1.7 million class B ordinary shares in a Hong Kong public offering. The Hong Kong offering price is capped at HK$228 (US$29.04) per share. The company's shares are expected to start trading on the Hong Kong Stock Exchange on September 16 under the stock code "2525", achieving a dual primary listing alongside its existing Nasdaq listing.

Investors appear optimistic about Hesai's expansion and growth prospects. The company intends to use the funds raised for R&D investments, manufacturing capacity expansion, business development, and as working capital. Hesai's strong market position in the LiDAR industry, with major clients including Li Auto, Zeekr, and Xiaomi, coupled with its recent profitability milestone, likely contributes to the positive market sentiment. The company projects LiDAR shipments of 1.2 million to 1.5 million units for 2025, representing significant year-on-year growth.

The Hong Kong listing is seen as a strategic move for Hesai, potentially broadening its investor base and providing an alternative funding avenue. This comes amid ongoing concerns about the potential delisting of Chinese companies from U.S. exchanges, making Hong Kong an increasingly attractive destination for Chinese firms seeking public listings.