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, backed by Chinese-based automotive group Geely, offers luxury vehicle models and aims to lead the electrification and innovation of the automobile industry. Geely will hold more than 50% of the company’s voting power after the IPO is complete.
Zeekr, which began delivering upscale sedans in January, is positioned to be a major competitor for Tesla, reportedly outselling the company in the province of Zhejiang, China. The company plans to expand into Europe and Latin America this year, with existing sales in Sweden and the Netherlands. Despite posting $7.28 billion in revenue for 2023, Zeekr reported a loss of $1.16 billion. The company delivered 16,089 units in April.
The proceeds from the offering will be used by Zeekr to develop advanced battery electric vehicle technologies and for selling and marketing purposes, including expanding charging infrastructure. The company also plans to use the funds for general corporate needs. Underwriters of the IPO deal include Goldman Sachs, Morgan Stanley, Merrill Lynch, and China International Capital.
Zeekr’s vision is to drive the electrification, intelligentization, and innovation of the automobile industry by developing and offering next-generation premium BEVs and technology-driven solutions. With Geely’s backing, the company has the resources to compete with established players like Tesla and expand its presence globally. With plans to expand into new markets and further develop its electric vehicle technologies, Zeekr is poised for significant growth in the coming years.
The strong performance of Zeekr in car sales in China indicates its potential to capture a significant market share and compete with industry leaders. The company’s focus on developing advanced technologies, expanding its reach internationally, and improving its charging infrastructure will enable it to continue its growth trajectory. With a clear vision and backing from Geely, Zeekr is well-positioned to capitalize on the growing demand for electric vehicles globally.
The successful pricing of Zeekr’s IPO at the top end of its range and the strong interest from investors demonstrate confidence in the company’s growth prospects and its ability to compete in the rapidly evolving electric vehicle market. With a focus on innovation and sustainability, Zeekr is poised to establish itself as a key player in the electric vehicle industry and drive the transition to a more sustainable future. Investors will be keen to see how Zeekr utilizes the proceeds from its IPO to further develop its technology and expand its market presence.
