Chinese maker of robot-vacuum sensors launches Hong Kong IPO, undeterred by US ban

Shenzhen Camsense Technologies, a producer of sensors for autonomous robotic vacuum cleaners, has initiated a Hong Kong initial public offering (IPO) in pursuit of raising approximately HK$680 million (US$86.7 million), despite recent obstacles imposed by the United States' import ban on foreign-made robotic vacuum robots. "Our ongoing client product exports and procurement remain unimpeded, with potential disruptions primarily affecting new product development timelines," stated Camsense co-founder Zhou Kun regarding the ban's repercussions.

"We have maintained consistent communication with clients. Presently, our research and development advancements and order intake remain unaffected."

In late July, the United States Federal Communications Commission (FCC) included foreign-produced "advanced robotic devices," encompassing robotic vacuum cleaners, on its so-called Covered List, thereby prohibiting new models from obtaining the essential equipment authorization for US import and sale. Camsense is set to issue 11.58 million shares at HK$58.85 each, according to a stock exchange filing on Tuesday.

The shares are slated to commence trading on September 30. Major contributors to the IPO, including BYD and Shanghai-listed Jiaxing Zmax Optech, both suppliers to Camsense, collectively accounted for HK$110 million, or 16 percent of the base share sale, subject to a six-month lock-up period, as per the prospectus.

Camsense intends to allocate IPO proceeds towards research and development, bolstering its manufacturing capabilities, and to cater to working capital and general corporate needs. China's robotic vacuum cleaner industry has experienced a rapid expansion, with prominent brands like Ecovacs Robotics, Dreame Technology, and Beijing Roborock Technology selling products worldwide.

As a manufacturer of lidar (light detection and ranging) and line laser sensors—components utilized by machines to perceive their surroundings—Camsense has profited from this upward trend. The Shenzhen-based company did not have direct sales to the US; however, several clients sold vacuum cleaners and other devices incorporating its sensors there, as per the prospectus.

To diversify its revenue streams, Camsense intends to venture into yard work and pool cleaning robots, along with the development of humanoid robots. The company has already distributed prototypes to various manufacturers and secured intent orders from two pool robot manufacturers and one yard robot manufacturer, according to Zhou.

China International Capital and Guosen Securities (HK) Capital have been appointed as joint sponsors for the IPO.