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Geely-Owned Zeekr Makes Debut on the New York Stock Exchange
Zeekr, a premium electric vehicle (EV) brand owned by Geely, has recently completed its transition to the New York Stock Exchange, marking the latest Chinese automaker to pursue a public offering in the United States. This move comes after several months of negotiations and strategic planning.
The company aims to raise up to $367.5 million by offering 17.5 million American depository shares (ADS) at a price range of $18 to $21 per share. Each ADS is equivalent to 10 ordinary shares, with Zeekr targeting a valuation of $5.13 billion. Notably, in February 2023, the EV manufacturer secured $750 million in funding at a valuation of $13 billion, showcasing its significant growth trajectory.
Raising Capital and Investor Interest
Zeekr has already garnered substantial interest from key industry players, with three prominent companies expressing a combined interest of up to $349 million in the ADS offering. These include Geely Auto, the parent company of Zeekr, leading EV battery manufacturer CATL, and Israeli self-driving technology firm Mobileye. Such endorsements from industry giants underline the appeal and potential of Zeekr’s business model.
Despite the optimistic outlook, Zeekr’s IPO could face challenges in fundraising efforts. Chinese firms, in general, have encountered difficulties in raising capital in the U.S. market, a trend that persisted even after regulators gained access to audit documents for companies based in China and Hong Kong in 2022. Recent statistics indicate a sharp 82% decline in fundraising activities during the first quarter of the year, highlighting the restrictive fundraising environment for Chinese entities.
Expansion and Market Positioning
A successful public listing would see Zeekr join a roster of Geely-owned companies that are already publicly traded, including Volvo and Polestar. The introduction of Lotus Technology on the Nasdaq earlier this year through a $7 billion SPAC deal further underscores Geely’s commitment to expanding its presence in global markets.
After the IPO, Geely Chairman Shufu Li is poised to retain control of nearly 75% of Zeekr’s shares, while CEO An Conghui will hold approximately 3% of the total shares. This strategic ownership structure aligns with Geely’s long-term vision and leadership stability within the organization.
Zeekr’s product portfolio comprises premium EVs such as the 007 sedan, the 001 five-seat crossover, and the X compact SUV. With plans to enhance its footprint in Europe and Asia, particularly in untapped markets, Zeekr is well-positioned to capitalize on the increasing demand for high-end electric vehicles globally.
Moreover, the company’s assertion of outselling Tesla in certain regions of China underscores its competitive edge and market potential. Zeekr’s expansion into Latin America signifies a proactive approach to capturing diverse market segments and solidifying its presence on a global scale.
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