Unitree Robotics has priced its IPO at 150.8 yuan ($22.4) per share, raising $900 million and valuing the company at 61 billion yuan, or about $9 billion. The IPO has generated unprecedented retail demand, with the online portion oversubscribed over 5,000 times, resulting in a very low winning rate of 0.018%.
Despite the enthusiasm, analysts like Hao Hong from Lotus Asset Management caution that while Unitree's robots can perform impressive feats, such as kung fu kicks, they have yet to demonstrate practical utility in everyday tasks.
The company acknowledges in its prospectus that large-scale commercial adoption may be slower than anticipated due to limitations in robotic hand precision and durability. Dominik Pross, an equity analyst at VP Bank, notes that even advanced humanoid robots can only perform a limited number of tasks for a few hours before needing to recharge.
The competitive landscape is heating up, with other companies like AgiBot and Leju Robotics also planning IPOs. China's dominance in robotics is underscored by a projected 90% annual growth in the global humanoid robot fleet through 2035, with Unitree's flagship model priced at $16,000.
However, the company faces challenges, including a significant portion of its revenue coming from research and education rather than commercial applications. The geopolitical landscape adds another layer of complexity, as recent U.S. restrictions on imports of foreign-made robots could impact Unitree, which derived 13% of its revenue from the U.S. last year.
Despite these challenges, the potential market for humanoid robots is substantial, attracting interest from major players like Tesla, which is pivoting towards robotics with its Optimus project