Innovusion, the LiDAR supplier for electric vehicle manufacturer NIO, is making plans for a potential initial public offering (IPO) in the United States. The China Securities Regulatory Commission (CSRC) has disclosed that Innovusion is considering listing up to 21,382,252 ordinary shares on the Nasdaq exchange. This move comes as the CSRC continues to exercise increased oversight on Chinese companies’ US listings following incidents like the Luckin Coffee financial scandal and Didi’s listing disaster.

Founded in 2016, Innovusion has a strong presence with research and development centers in Silicon Valley, Suzhou, and Shanghai. The company has also established advanced LiDAR manufacturing facilities in Ningbo and Suzhou. Innovusion’s LiDAR technology, crucial for advanced autonomous driving capabilities, has gained recognition in the industry. The company achieved a significant milestone in March 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.

To comply with regulations introduced by the CSRC in 2021, Chinese companies venturing into US IPOs now need to engage with their home regulators. This requirement aims to enhance transparency and mitigate potential risks for investors, considering the challenges faced by Chinese companies listed in the US.

Innovusion has received substantial funding throughout its journey. In 2018, the company secured $30 million in Series A funding, led by NIO Capital. This highlights 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 strengthened Innovusion’s financial position.

The significance of this IPO move is evident in Innovusion’s pivotal role in the growing autonomous driving landscape. Collaborations with prominent entities such as Baidu Apollo, Mogo Auto, and TuSimple in China, as well as being chosen by Faraday Future to power the FF 91’s autonomous driving system, demonstrate Innovusion’s market traction.

This IPO journey by Innovusion aligns with a larger trend, as Beijing WeLion New Energy Technology, a semi-solid-state battery cell supplier for NIO, is also considering a potential public offering in the future. The increasing momentum of Chinese firms seeking listings on US exchanges signifies both improved access to global capital and heightened focus on transparency and investor confidence. As Innovusion prepares for this significant step, industry observers eagerly anticipate further developments in this rapidly evolving landscape.

TrendForce 2023 Infrared Sensing Application Market and Branding Strategies
Release: 01 January 2023
Format: PDF
Language: Traditional Chinese / English
Page: 164