Backed by DeepSeek, Unitree IPO tests investor appetite for China’s AI robotics boom
The long-awaited initial public offering of Unitree Robotics, which values the Hangzhou-based firm at 60.99 billion yuan (US$9 billion), is set to serve as a valuation benchmark for China’s booming embodied-AI sector, buoyed by retail investor excitement and high-profile AI backers like DeepSeek. Widely billed as “mainland China’s first humanoid stock”, Unitree has priced its IPO on Shanghai’s…
Unitree Robotics, a Hangzhou-based company specializing in embodied AI, is set to make its debut on the Shanghai Star Market with a highly anticipated initial public offering (IPO). The IPO values the firm at 60.99 billion yuan, or approximately US$9 billion, positioning Unitree as the first humanoid stock in mainland China. Backed by high-profile investors like AI unicorn DeepSeek, technology giant Tencent Holdings, and state-backed corporations, the IPO aims to gauge investor appetite for China's burgeoning AI robotics sector.
Unitree priced its shares at 150.8 yuan per share, exceeding its initial target of 4.2 billion yuan in new share sales. The strategic placement included commitments from DeepSeek, which invested 141 million yuan with a three-year lock-up period, to co-develop AI models and technology with Unitree. The IPO's valuation serves as a benchmark for other AI hardware and foundational models companies, a point highlighted by Zheng Hualiang, founder of Hangzhou-based venture capital firm Leap VC.
Unitree's IPO comes as a wave of Chinese robotics startups, including Deep Robotics, Leju Robotics, AgiBot, X Square Robot, and LimX Dynamics, seek to enter public markets. With a projected price-to-earnings ratio of 219.23 times and a price-to-sales multiple of 35.89 times, Unitree's IPO implies considerable investor enthusiasm, despite some concerns about a potential bubble in physical AI.
Unlike many competitors, Unitree has demonstrated profitability, reporting 1.7 billion yuan in revenue and 591 million yuan in adjusted net profit in the previous fiscal year. Despite high valuations, investor interest remains strong, with retail investors like Shanghai-based Kathy Shi subscribing to the IPO in hopes of capitalizing on the listing premium.
However, a volatile market backdrop for mainland tech stocks warns that the enthusiasm may be short-lived if shipment volumes do not scale rapidly. Despite the challenges, Unitree's low-cost mass production capabilities and strong consumer brand recognition set it apart from its competitors, ensuring its distinct edge in the competitive robotics supply chain.
Written by urgent.news from SCMP Tech's reporting — not their text. Machine-written; read the original for the full account.
