Caixin
Mar 31, 2021 07:22 AM
BUSINESS & TECH

Agritech Startup XAG Seeks Domestic Listing After $46 Million Fundraising

What’s new: XAG Co. Ltd., a Chinese manufacturer of agricultural drones and robots, is planning an initial public offering on its home market shortly after securing 300 million yuan ($46 million) of funding.

Guangzhou-based XAG filed with local securities regulators for the flotation and hired Shenwan Hongyuan Securities for pre-listing tutoring, records from the Guangdong provincial securities regulatory commission showed.

Caixin learned that XAG is likely to seek the listing on Shanghai’s Nasdaq-like STAR Market. The company said it is preparing for a share sale without giving more details.

What’s the context: XAG completed its latest funding round of 300 million yuan earlier this month, giving it a valuation of nearly 10 billion yuan.

Established in 2007, XAG focuses on agricultural drones used to enhance crop production efficiency and protect plants. The company’s other major products include remote sensing drones and unmanned ground vehicles for agricultural use and smart farm management software. Together with industry leader SZ DJI Technology Co., the companies claim a combined 90% of China’s agricultural drone market.

Industry analysts are expecting a boom in the industrial drone business in China, saying the sector will exceed consumer-facing drones in terms of market size this year. Between 2015 and 2019, sales of industrial drones grew at an annual rate of 49.9%, compared with 22.6% growth for consumer drones, according to Frost & Sullivan.

Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full story in Chinese, click here.

Contact reporter Han Wei (weihan@caixin.com) and editor Bob Simison (bobsimison@caixin.com).

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