Zeekr, a Chinese electric vehicle manufacturer, recently priced its IPO at $21 a share – the top end of its range. This move will see the company sell 21 million American depository shares, raising a total of $441 million. Zeekr, backed by Chinese automotive giant Geely, is set to begin trading on the New York Stock Exchange under the ticker ZK, signaling its entry into the global market.
Zeekr is focused on offering luxury electric vehicle models, with Geely holding over 50% of the company’s voting power post-IPO. The company’s mission, as described in its SEC filing, is to lead the electrification, intelligentization, and innovation of the automobile industry through cutting-edge premium BEVs and technology-driven solutions. With ambitions to compete with established players like Tesla, Zeekr has already made significant strides in the Chinese market, particularly in the province of Zhejiang.
Market Competition
Zeekr’s CEO, Andy An, revealed that the company has been closing the sales gap with Tesla, particularly in Zhejiang province. This signifies a growing market presence for Zeekr within China, where its parent company, Geely, is headquartered. Looking ahead, Zeekr has plans to expand into Europe and Latin America, building on its existing presence in countries like Sweden and the Netherlands. This expansion strategy indicates Zeekr’s aggressive approach to capturing global market share in the electric vehicle industry.
In terms of financials, Zeekr reported $7.28 billion in revenue for 2023, along with a loss of $1.16 billion. These figures highlight the company’s investment in growth and expansion, as it focuses on developing advanced battery electric vehicle technologies. Additionally, Zeekr aims to utilize the IPO proceeds for selling and marketing efforts, including expanding its charging infrastructure and meeting general corporate needs. The involvement of top-tier underwriters like Goldman Sachs and Morgan Stanley underscores investor confidence in Zeekr’s future prospects.
Zeekr’s IPO pricing at the upper end of its range showcases strong investor interest in the company’s vision and growth potential. With Geely’s backing, a focus on luxury electric vehicles, and plans for global expansion, Zeekr is positioned as a key player in the competitive electric vehicle market. As the company continues to innovate and expand its market reach, it will be interesting to see how Zeekr disrupts the industry and challenges established players like Tesla on a global scale.