Unitree Robotics, one of the leading forces in mainland China’s booming humanoid robot sector, has cleared a major hurdle for its highly anticipated initial public offering (IPO) after passing a listing committee hearing on Monday.

The Hangzhou-based company filed to list on Shanghai’s Star Market on March 20. Following two rounds of regulatory inquiries and an on-site inspection, the hearing approval opens the door for the IPO to proceed to registration and issuance.

Unitree said it aimed to raise 4.2 billion yuan (US$621 million) by offering at least 40.4 million shares, representing a minimum 10 per cent stake.

The company joins competitors in a rush to public markets. Dobot, already listed in Hong Kong, is pursuing a dual listing on Shenzhen’s ChiNext board, while Leju Robotics and Deep Robotics are also advancing towards IPOs in Shenzhen and Shanghai, respectively.

“The humanoid IPO wave will raise market interest in robotics equities,” said Zhong Sheng, head of China industrials research at Morgan Stanley.

As a bellwether for the sector, Unitree’s listing is being closely watched by investors. Last year, the firm generated 1.7 billion yuan in revenue – trailing Hong Kong-listed UBTech’s 2 billion yuan – but posted the highest net profit among peers at 590.8 million yuan.