Zeekr NYSE Debut: Raises $441M at $21 per Share, Valuation Hits $5.13B.
Today, Zeekr (NYSE: ZK), the premium electric vehicle (EV) subsidiary of Geely Holding Group, officially entered the New York Stock Exchange (NYSE), marking its debut in the US market. With an initial public offering (IPO) price of $21 per American depositary share (ADS), Zeekr’s valuation surged to approximately $5.13 billion, positioning it as a formidable player in the EV sector. This milestone comes as part of a broader trend of Chinese EV makers tapping into the US capital markets for expansion.
Initially planning to offer 17.5 million ADSs, Zeekr witnessed strong demand, prompting an expansion to 21 million ADSs, raising a total of $441 million. Further potential exists with an over-allotment option that could push the offering to 24.15 million ADSs, potentially raising approximately $507 million. This aggressive fundraising underscores investor confidence in Zeekr’s future prospects within the competitive EV landscape.
Comparatively, Zeekr’s valuation stands at roughly half of Nio’s current market capitalization of $10.7 billion, with Xpeng at $7.5 billion and Li Auto at $28.4 billion. Despite these differences, Zeekr’s strategic positioning within Geely Holding Group, coupled with its robust revenue growth trajectory, signals its potential to emerge as a key contender in the global EV market.
Since its inception on April 15, 2021, Zeekr has been backed by Geely Holding’s significant investment in sustainable mobility, including its Sustainable Experience Architecture (SEA) initiative, representing a multi-billion-dollar commitment to EV innovation. Zeekr’s revenue has shown exponential growth, reaching RMB 51.7 billion in 2023, albeit with accompanying net losses attributed to intensive R&D and market expansion efforts.
Looking ahead, Zeekr aims to achieve profitability in 2024 under Hong Kong financial reporting standards, as disclosed in Geely Auto’s recent earnings report. With a solid foundation, ambitious growth targets, and a commitment to innovation, Zeekr is poised to redefine the future of electric mobility on a global scale.
