Shein set to raise US$1.7bil in Hong Kong IPO, sources say

Two Chinese robotics start-ups, both founded by former executives at Alibaba Group Holding and based in Hangzhou, have announced plans to launch initial public offerings (IPOs) in Hong Kong next year. Infiforce Technology Group, known for its cognitive system "AtomBrain," and UDeer.ai, a producer of autonomous cleaning robots, are part of a growing wave of Chinese companies in the embodied artificial intelligence sector looking to go public.

Infiforce Technology Group's founder, Isabella Bai, stated that the company aims for a 2027 listing, with preparations already underway. The firm recently completed a significant funding round of nearly 1 billion yuan (US$149 million) and has secured overseas orders, including a 1,000-unit contract in Saudi Arabia. Meanwhile, UDeer.ai, also founded in 2023, is also planning a Hong Kong IPO.

Founder Robin Chen revealed that the company intends to submit its IPO application in the first half of next year, with revenue targets of 300 million to 500 million yuan in 2026, rising to around 1 billion yuan by 2027.

UDeer's shipments are projected to reach the high thousands in the current year and around 50,000 units by next year. While Hong Kong is favored as the initial listing location, UDeer's teams are also considering the possibility of A shares. However, Puhua Capital, a venture capital firm specializing in hard-tech and embodied intelligence start-ups, has cautioned that valuations are becoming inflated due to capital clustering, with 80% to 90% of market capital concentrated in the top 10% to 20% of companies.

Shen Qinhua, the founding partner of Puhua Capital, emphasized that this year marks the "first year of mass production" for the embodied AI industry, but stressed that companies and the market must still digest the high valuations.