Unitree IPO to test valuations as venture capital floods China robotics

Unitree IPO to test valuations as venture capital floods China robotics The robot maker plans to raise 4.2 billion yuan by selling at least 40 million shares that implies a valuation of around 42 billion yuan Unitree Robotics has secured approval from China’s securities regulator for a Shanghai initial public offering that is poised to set a valuation benchmark for China’s sizzling embodied AI sector. The nod from the China Securities Regulatory Commission came about a month after the Hangzhou-based company cleared a review by the Shanghai Stock Exchange’s listing committee. Unitree is now finalising its underwriting plan, pricing and share subscriptions for a potential debut as early as late July. The robot maker plans to raise about 4.2 billion yuan (US$618.4 million) by selling at least 40.4 million shares – a minimum 10 per cent stake that implies an initial valuation of around 42 billion yuan. The proceeds will fund robot model development, robot-body research, new products and manufacturing capacity, according to its prospectus. Unitree’s financials offer a rare look at a profitable player in the space. The company generated 1.7 billion yuan in revenue and 591 million yuan in adjusted profit last year. By comparison, its listed peer, Hong Kong-traded UBTech Robotics, brought in 2 billion yuan in revenue last year but posted a net loss of roughly 700 million yuan. UBTech’s market capitalisation stood at about HK$52.8 billion (US$6.7 billion) as of Friday. [Image text:] aws ARI aws aws Support