On Wednesday, Chinese robotics company Unitree is set to IPO at a $9bn valuation. This would set their share price at around $22 per share. However, this IPO is one of the most hyped IPO’s that we have ever seen.
This IPO is over 8000x oversubscribed, and Unitree is currently trading at $98 on Hyperliquid, or 345% higher than the IPO price. This indicates a huge opening for Unitree. Unfortunately, this is a Chinese company, which isn’t so great for non-Chinese investors.
The great news is that this Unitree IPO should mark the start of a general mania around robotics, especially humanoid robotics in particular. Even better news is that there are very few pureplay robotics names trading on US markets. One of them is $CCXI. $CCXI is a SPAC that is set to merge, in Q4, with Agility Robotics, which is an American (!) company that makes humanoid robots, which are already being used by companies such as Toyota and Amazon. Their CEO is even a former Microsoft executive. This company represents an American humanoid robotics play with robots already in use and orders already in place. Humanoid robotics has the potential to be the next big play, following memory and AI in general (although those haven’t run their course yet either). Basically, this week should mark the start of a broad sector-wide move, and $CCXI is one of the companies in a great position to move with the sector at large. This is more of a swing trade, but there is reason to believe this can be an outstanding long-term play as well
Positions: $CCXI shares
TL;DR: Unitree go up big on IPO day, robotics in general go up big in response, especially $CCXI