Unitree officially launched its online and offline share subscription on Aug. 10 at RMB 150.80 per share. At that price, the company’s post-offering market capitalization is about RMB 60.993 billion, with total fundraising of nearly RMB 6.1 billion. Its offering price implies a price-to-earnings ratio of 219.23, well above the industry average of 38.56.
Major shareholders before the offering
Meituan, through three affiliated entities, held a combined 9.65% stake in Unitree before the offering, making it the company’s largest external institutional shareholder. Sequoia China ranked second with a combined 7.11% stake. Based on the offering price, both institutions stand to record substantial paper gains.
Sequoia China first joined a capital increase in December 2019 with an investment of RMB 15 million, when Unitree’s post-money valuation was only RMB 150 million.
DJI fund exited after planned investment
A fund affiliated with DJI had planned in 2018 to invest RMB 10.1286 million in a capital increase for roughly 17% ownership. The registration had been completed, but the fund chose to withdraw in 2019. If that investment had been retained until now, its stake would be worth about RMB 3.7 billion based on the offering price.
DJI did not explain the reason for the withdrawal. In 2019, however, the company published an anti-corruption notice saying it had dealt with 45 employees suspected of corruption, and that the work of its investment department had come to a complete halt.
Other shareholders and strategic placement
Other major shareholders include Matrix Partners China with 5.45%, Shunwei Capital with 4.42%, and CITIC Securities with a combined 4.49%.
In the strategic placement, DeepSeek was allocated 933,400 shares, corresponding to a subscription amount of RMB 141 million. Shanghai Qishan Investment, a Tencent affiliate, was allocated 903,300 shares. CITIC Securities, the sole sponsor, is set to receive about RMB 145 million in sponsorship and underwriting fees, and was also allocated 808,900 shares through follow-on investment.
Valuation risk disclosure
Unitree also warned that its offering P/E ratio is significantly above the industry average and that there is a risk of a share price decline. The deadline for successful subscribers to make payment is Aug. 12.