In a move indicative of expanding global ambitions, Innovusion, the LiDAR supplier for electric vehicle manufacturer NIO, is gearing up for a potential initial public offering (IPO) in the United States. The China Securities Regulatory Commission (CSRC) revealed that Innovusion is contemplating the issuance of up to 21,382,252 ordinary shares for listing on the Nasdaq exchange. This decision comes as the CSRC’s heightened oversight on Chinese companies’ US listings continues following incidents such as the Luckin Coffee financial scandal and Didi’s listing debacle.
Founded in 2016, Innovusion boasts a prominent presence across multiple research and development centers situated in Silicon Valley, Suzhou, and Shanghai. Furthermore, the company has established state-of-the-art LiDAR manufacturing facilities in Ningbo and Suzhou. Innovusion’s LiDAR technology, essential for advanced autonomous driving capabilities, has gained traction in the industry. The company reached a significant milestone on March 28, 2022, when NIO introduced the first ET7 vehicles equipped with Innovusion’s LiDAR products. Since then, all vehicles based on NIO’s NT 2.0 platform have been standardized with Innovusion’s LiDAR.
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In light of the industry’s evolving landscape, Chinese companies venturing into US IPOs now face the necessity to engage with their home regulators, as per regulations introduced by the CSRC in 2021. This change aims to bolster transparency and mitigate potential risks for investors, following the aforementioned challenges faced by Chinese companies listed in the US.
While specifics regarding Innovusion’s planned IPO remain undisclosed in the CSRC’s announcement, the company’s journey has been underpinned by substantial funding. In 2018, Innovusion secured $30 million in Series A funding, led by NIO Capital, a testament to the strategic partnership between the two entities. Subsequent funding rounds, including $64 million in Series B funding in May 2021 and $66 million in Series B+ funding in August 2021, have further solidified Innovusion’s financial foundation.
The significance of this IPO move is underscored by Innovusion’s pivotal role in the burgeoning autonomous driving landscape. Collaborations with prominent entities such as Baidu Apollo, Mogo Auto, and TuSimple in China, along with being selected by Faraday Future to power the FF 91’s autonomous driving system, highlight Innovusion’s market traction.
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Innovusion’s IPO journey aligns with a larger trend as Beijing WeLion New Energy Technology, a semi-solid-state battery cell supplier for NIO, also contemplates a potential public offering in the coming years. The expanding momentum of Chinese firms seeking listings on US exchanges signals both increased access to global capital and heightened scrutiny to uphold transparency and investor confidence. As Innovusion prepares to take this significant step, industry observers eagerly await further developments in this rapidly evolving landscape.
