Chinese electric vehicle maker Zeekr priced its initial public offering at $21 a share, at the top end of its range, raising $441 million by selling 21 million American depository shares. The company will begin trading on the New York Stock Exchange under the ticker ZK. Zeekr is backed by Chinese-based automotive group Geely and offers luxury vehicle models, including an upscale sedan. Geely will have more than 50% of the company’s voting power after the IPO.
Zeekr aims to lead the electrification, intelligentization, and innovation of the automobile industry by developing next-generation premium battery electric vehicles and technology-driven solutions. The company poses big competition for Tesla, as it reportedly outpaced Tesla in car sales in Zhejiang, China. Zeekr CEO Andy An stated that the sales gap with Tesla keeps narrowing, and the company plans to expand into Europe and Latin America. Zeekr posted $7.28 billion in revenue for 2023 with a loss of $1.16 billion, and delivered 16,089 units in April.
The company plans to use the proceeds from the offering to develop more advanced battery electric vehicle technologies and for selling and marketing purposes, including expanding its charging infrastructure. Zeekr revealed in its SEC filing that it plans to expand into Europe and Latin America this year, having already sold vehicles in Sweden and the Netherlands. The company aims to grow beyond its current market in China and continue to innovate in the electric vehicle sector.
The underwriters of the deal include Goldman Sachs, Morgan Stanley, Merrill Lynch, and China International Capital. Zeekr will use the funds raised from the IPO for various purposes, including research and development of advanced technology for its electric vehicles. With Geely’s backing and ambitious plans for expansion beyond China, Zeekr is positioning itself as a key player in the global electric vehicle market. The company’s focus on premium electric vehicles and technology-driven solutions could enable it to compete effectively with established players like Tesla.
Zeekr’s success in outpacing Tesla in car sales in Zhejiang, China, demonstrates its potential for growth and expansion in other markets. The company’s emphasis on innovation and advanced technology for its electric vehicles aligns with the growing demand for eco-friendly transportation solutions worldwide. By using the proceeds from the IPO to further develop its electric vehicle technologies and expand its market presence, Zeekr is poised to become a significant player in the electric vehicle industry. With Geely’s support and a strong foothold in the Chinese market, Zeekr is well-positioned to compete with leading electric vehicle manufacturers on a global scale.
Zeekr’s focus on electrification, intelligentization, and innovation sets it apart in the electric vehicle industry, positioning it as a key player in the market. The company’s revenue and sales figures demonstrate its growth potential and ability to compete with established players in the industry. With plans to expand into Europe and Latin America, Zeekr is poised for further growth and success in the global electric vehicle market. The IPO pricing at the top end of its range and the strong interest from underwriters indicate confidence in Zeekr’s future prospects and potential for continued success in the electric vehicle sector.
