(Jan 10): Hesai Technology Co, a Chinese developer of sensor technologies used in self-driving cars, is planning to file for an initial public offering in the US that could raise about US$150 million, according to people familiar with the matter.

The Shanghai-based startup is working with Credit Suisse Group AG, Goldman Sachs Group Inc and Morgan Stanley on the first-time share sale, the people said, asking not to be identified as the information is private. Hesai could file as early as next week, the people said.

The firm, which counts Chinese smartphone maker Xiaomi Corp among its backers, has received strong interest in the potential listing from prospective investors, the people said. Chinese stocks listed in the US got off to a flying start in 2023, with the Nasdaq Golden Dragon China Index gaining 14% in the first week of trading this year, its best start on record.

Discussions are ongoing and details about the IPO such as size and timing could change, the people said. A representative for Goldman Sachs declined to comment, while representatives for Credit Suisse, Hesai and Morgan Stanley didn’t immediately respond to requests for comment.

Hesai could be among the first Chinese companies to launch US IPOs this year, heralding a wave of listings riding on the recent market boom. Such listings slowed to a trickle amid an auditing dispute between the two countries’ regulators and pessimism over China’s economy due to its restrictive Covid policies. Atour Lifestyle Holdings Ltd, a Shanghai-based hotel chain operator, debuted on the Nasdaq in November, as the Covid Zero regime of quarantine and testing began to ease.

Founded in 2014, Hesai develops and produces lidar sensors for autonomous driving cars and robotics applications. The firm has clients in 40 countries, according to its website. Hesai has raised more than US$500 million from investors including Xiaomi, German engineering conglomerate Robert Bosch GmbH, food delivery giant Meituan, and investment firms Hillhouse Ventures and CPE.