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Introduction
Zeekr, the premium electric vehicle subsidiary of Geely Auto in China, is poised to commence trading on the stock market following an expansion of its initial public offering (IPO). The company, officially known as Zhejiang Zeekr Intelligent Technology Co., Ltd., successfully sold 21 million American depositary shares at $21 per share. This achievement resulted in a total amount of $441 million raised, exceeding its initial target of $367.5 million.
Financial Details
The IPO has provided Zeekr with a fully diluted valuation of $5.5 billion at the upper end of its projected range. This figure falls below the $13 billion valuation Zeekr achieved after a funding round in February 2023. Nevertheless, the company’s public listing stands as the most substantial since Didi Global’s $4.4 billion IPO in 2021.
Entities such as Geely, CATL (an EV battery maker), and Mobileye (an Israeli self-driving technology firm) exhibited interest in acquiring up to $349 million worth of the ADS that were offered by Zeekr. In an official statement, Zeekr’s CEO, Conghui An, emphasized the significance of this listing on the global stage, signaling the company’s readiness to expand and meet the escalating demands for intelligent electric mobility.
Market Position and Expansion
Zeekr will be trading on the New York Stock Exchange under the stock ticker “ZK”. The proceeds generated from this listing will be allocated towards the innovation of new products and technologies, and will further bolster the company’s marketing and charging network initiatives.
By becoming a publicly traded company, Zeekr joins the ranks of other Geely-owned entities such as Volvo and Polestar. The company’s move aligns with the broader trend of Chinese EV manufacturers seeking listings in the U.S. market to compete with established players like Tesla.
Zeekr’s product portfolio consists of premium electric vehicles including the 007 sedan, 001 five-seat crossover, and X compact SUV. With over 240,000 units sold to date, Zeekr is focused on expanding its footprint in Europe, where it currently operates solely in Sweden and the Netherlands. Plans are also in place for market penetration in Asia and Latin America.
Conclusion
The debut of Zeekr on the stock market marks a significant milestone in the company’s trajectory towards global recognition and expansion. As the competition in the EV space continues to intensify, Zeekr’s commitment to innovation and strategic growth initiatives positions it as a key player in the evolving landscape of smart electric mobility.
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