Unitree, the world's largest humanoid robot maker, made a spectacular entry onto China's stock market on Wednesday, with shares surging by more than 600% on their first day of trading. The company, officially known as Yushu Technology Co, saw its shares rise as high as 1,100 yuan (£120.39), up from an IPO price of 150.8 yuan. Gains were later pared back to a rise of nearly 500%.
Global Fame Through Viral Videos
Unitree's robots have gained global fame through viral videos showing them performing martial arts, running at Olympic speeds, and serving as backup dancers for pop stars. The company shipped more than 5,500 humanoid robots last year, according to the company.
Investors are searching for winners in robotics development, which has emerged as a key battleground in the AI race. The market for human-like robots is expected to grow rapidly, with analysts projecting that sales could rise from around $2bn (£1.5bn) in 2025 to $300bn by 2035.
Exceptional Retail Investor Demand
There was exceptional demand from Chinese retail investors in Unitree's IPO, with the tranche of shares dedicated to non-professional stockpickers oversubscribed by thousands. Unitree is one of the few listed humanoid robot makers in the world. Its biggest competitor, AgiBot, is private, and its smaller rival UBTech is listed in Hong Kong.
At least half a dozen other Chinese humanoid robotic businesses are preparing to go public, including Deep Robotics and Leju Robotics.
Founder's Wealth and Market Context
Wang Xingxing, who founded Unitree in 2016 and remains its chief executive, owns about a fifth of the business. According to Reuters, the spike in its share price means his personal wealth is now worth more than $12bn on paper.
Unitree's market debut coincided with the opening of the World Robot Conference in Beijing on Wednesday, where hundreds of companies, mostly Chinese, launched new products and demonstrated their technical developments.
Regulatory Challenges and Backing
Last month, the US Federal Communications Commission banned imports of future models of foreign-made humanoid and quadruped robots based on national security concerns. This summer, the Pentagon also added Unitree to a list of Chinese military companies, describing it as a "contributor to the Chinese defence industrial base." Unitree has previously said its robots are for civilian use. The business is backed by several big Chinese technology companies, including Tencent and Alibaba.
