Exclusive-Chinese EV Maker Zeekr Prices US IPO At Top Of Range To Raise $441 Million, Source Says By Reuters | Old North State Wealth News
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Exclusive-Chinese EV maker Zeekr prices US IPO at top of range to raise $441 million, source says By Reuters



By Echo Wang

NEW YORK (Reuters) -Chinese electric vehicle maker Zeekr Intelligent Technology priced its U.S. initial public offering (IPO) at the top of its indicated range on Thursday, raising $441 million, a person familiar with the matter said.

Zeekr, which is the premium brand of Chinese automaker Geely, upsized its IPO to sell 21 million American Depositary Shares at $21 per share, the source said, requesting anonymity as these discussions are confidential. The IPO values Zeekr at $5.1 billion.

The company closed orders from investors a day earlier after its IPO was oversubscribed, Reuters reported on Tuesday.

Zeekr did not immediately respond to a request for comment.

The strong demand for Zeekr’s IPO comes against a backdrop of a fierce EV price war in China that has undercut profits, leaving a number of companies to pursue expansion outside China where they can charge more and beef up their margins.

Zeekr is one of a number of Chinese automakers, including BYD (SZ:), SAIC and Great Wall Motor that have set their sights on Europe, rolling out electric models as they seek to compete with legacy European automakers on their own turf.

BYD and state-backed Chery have already announced plans to build cars in Europe.

The Zeekr listing is the first major Chinese flotation on U.S. stock exchanges in more than a year. Last year, Zeekr had put its IPO plans on hold, Reuters previously reported.

Zeekr delivered its first vehicle in October 2021. The company has delivered a total of about 196,633 cars, mostly in China, according to its IPO filing.

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Zeekr’s prospectus disclosed a surge in total revenue to 51.67 billion yuan ($7.3 billion) in 2023, up from 31.9 billion a year earlier. However, its loss from operations widened to 8.18 billion yuan from 7.15 billion.

Cornerstone investors, including Geely, have subscribed for up to $349.1 million worth of the shares that are being sold.

The number of Chinese companies that have pursued stock market flotations in the U.S. in the past few years has plummeted, after Chinese ride-hailing giant Didi Global was forced to delist its shares following a backlash from Chinese regulators.

In 2023, Chinese IPOs raised a total of $668 million, compared to the $13.7 billion raised in 2020, according to data from Dealogic. Prior to Zeekr’s IPO, Chinese companies raised $52 million through share sales in the U.S. this year.

Zeekr will list its shares on the New York Stock Exchange under the ticker “ZK” on Friday.

Goldman Sachs, Morgan Stanley, Bank of America, and CICC are the lead underwriters for the offering.

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