Chinese electric vehicle maker Zeekr recently priced its initial public offering at $21 a share, marking the top end of its range. The company plans to sell 21 million American depository shares, raising a total of $441 million once it begins trading on the New York Stock Exchange under the ticker ZK. This offering aligns with Zeekr’s expected range of $18 to $21 a share, as detailed in its F-1 filing with the Securities and Exchange Commission earlier this month.
Competition and Expansion Plans
Zeekr, which has the backing of Chinese-based automotive group Geely, offers a range of luxury vehicle models, including an upscale sedan that was introduced in January. Following the IPO, Geely will hold over 50% of the voting power in the company. Zeekr’s goal is to lead the electrification, intelligentization, and innovation of the automobile industry through the development of next-generation premium BEVs and technology-driven solutions. The company has set its sights on expanding into Europe and Latin America this year, with current sales operations in Sweden and the Netherlands. Zeekr also poses significant competition to Tesla, with reports indicating that it surpassed Tesla in car sales in Zhejiang, China, in the first three weeks of April.
Financial Performance and Future Plans
In terms of financials, Zeekr reported $7.28 billion in revenue for 2023 but also incurred a loss of $1.16 billion. Additionally, the company disclosed that it delivered 16,089 units in April. The proceeds from the IPO will be utilized for the development of more advanced battery electric vehicle technologies, as well as for marketing and selling purposes, including the expansion of charging infrastructure and general corporate needs. The underwriters for the IPO include renowned firms such as Goldman Sachs, Morgan Stanley, Merrill Lynch, and China International Capital.
Overall, Zeekr’s IPO pricing at the top end of its range reflects investor confidence in the company’s growth potential and position in the electric vehicle market. However, the company’s significant revenue and loss figures underscore the competitive landscape it operates in, particularly against industry giants like Tesla. Moving forward, Zeekr’s expansion plans and focus on innovation will be crucial in solidifying its market presence and driving long-term success in the rapidly evolving automotive industry.
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