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Retail investors are jostling for a slice of a leading Chinese humanoid robot company, in a sign of huge enthusiasm for tech stocks on the mainland.
The retail segment of Unitree’s initial public offering was more than 5,500 times oversubscribed, according to a stock exchange filing published ahead of a listing in Shanghai this month, even as more shares were made available to smaller investors to meet the demand.
In advance of the IPO, Unitree has allotted about 40.4mn shares, or about 10 per cent of its outstanding shares, priced at Rmb150.8 ($22.35), raising Rmb6.1bn ($904mn) and giving it a market valuation of $9bn.
Retail investors were allocated about 16 per cent of the total, with institutional investors including hedge funds linked to DeepSeek founder Liang Wenfeng.
There is huge enthusiasm for AI or AI-related stocks in China, amid a boom in stock valuations. The country’s Star 50 index has surged 27.4 per cent this year, well ahead of the benchmark CSI 300’s 0.8 per cent gain. The increased interest also comes amid a crackdown by authorities in Beijing keen to limit Chinese citizens’ exposure to US equity markets.
Unitree, founded by Wang Xingxing in 2016, has become a champion in the Chinese robotics industry — as well as a widely recognised brand — thanks to its robots’ dancing, flipping and boxing displays at lunar new year galas. Last year, Unitree’s success earned Wang a front-row seat at a meeting with Chinese President Xi Jinping.
The retail investor interest in Unitree far exceeded that of CXMT’s blockbuster IPO last month, which was more than 200 times oversubscribed.
Based on last year’s results, the share sale gives Unitree a price-to-earnings ratio of 219 and a price-to-sales ratio of almost 36. Unitree shipped 5,500 humanoid robots last year. Citic Securities is acting as the sponsor and lead underwriter.
The frenzy comes despite the US Federal Communications Commission last month banning imports of humanoid robots in a move widely seen as targeting Chinese products.
According to Unitree, overseas revenue accounts for more than 40 per cent of its earnings, with the US making up between 13.3 per cent and 18.4 per cent depending on the year.
In a section of its IPO prospectus highlighting risks, Unitree said the FCC move would not “affect the continued sales of the company’s existing main products in the US market”, but added that its new models would “face the risk” of being cut off.
In a recent note, Sheng Zhong, an equity analyst at Morgan Stanley, highlighted the Unitree IPO as a “catalyst” that could support other listed stocks in the sector.
Humanoid robotics, which increasingly have applications with “embodied AI”, or AI deployed in the physical world, are a source of emerging competition between the US and China, she noted.
“As the industry accelerates and continues to ramp up, we think this could be the beginning of US and China embodied AI competition escalation,” she said.
