Zeekr, a Chinese electric vehicle maker, recently priced its initial public offering at $21 a share, marking the top end of its range. The company is set to sell 21 million American depository shares, raising $441 million for its debut on the New York Stock Exchange under the ticker ZK. This offering falls within Zeekr’s projected range of $18 to $21 a share, as outlined in its F-1 filing with the Securities and Exchange Commission earlier.
With the backing of Chinese-based automotive group Geely, Zeekr is positioning itself as a strong competitor to Tesla in the electric vehicle market. Zeekr reportedly outpaced Tesla in car sales in Zhejiang, China, during the initial weeks of April. This province is where its parent company, Geely, is located. Zeekr CEO Andy An mentioned in an interview that the sales gap with Tesla is narrowing, indicating the company’s growth potential in the industry.
Zeekr has ambitious plans for expansion, aiming to enter the European and Latin American markets this year. The company has already established a presence in Sweden and the Netherlands. In terms of financial performance, Zeekr reported $7.28 billion in revenue for 2023 but incurred a loss of $1.16 billion. Despite this, Zeekr delivered 16,089 units in April, demonstrating its production and delivery capabilities.
The proceeds from Zeekr’s IPO will be allocated towards developing advanced battery electric vehicle technologies. Additionally, funds will be used for selling and marketing initiatives to expand its charging infrastructure and address general corporate needs. The underwriters of the offering include Goldman Sachs, Morgan Stanley, Merrill Lynch, and China International Capital.
Zeekr’s successful IPO and strong market positioning indicate its potential to disrupt the electric vehicle industry. With Geely’s backing, competitive sales performance, and strategic expansion plans, Zeekr is poised to carve out a significant market share and compete with established players like Tesla. The company’s focus on innovation and growth reflects its commitment to leading the electrification and intelligentization of the automobile industry in the coming years.
Leave a Reply