Zeekr IPO the largest by a Chinese company in the US
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- čas přidán 12. 05. 2024
- Zeekr Intelligent Technology, the high-end electric vehicle (EV) subsidiary of Geely Automobile, listed in Hong Kong, has raised approximately US$441 million (HK$3.4 billion) after increasing its stock offering in New York due to high demand from international investors. This makes Zeekr’s IPO the largest by a Chinese company in the US since Full Truck Alliance raised US$1.6 billion in June 2021.
The company sold 21 million American depositary shares (ADS) at US$21 each, the highest price in the range of US$18 to US$21. Initially, the company planned to sell 17.5 million ADS and gave its underwriters the option to sell an additional 2.625 million ADS, as per its regulatory filing on May 3. The shares are set to begin trading on the New York Stock Exchange on Friday. The IPO values Zeekr at US$5.1 billion in total. Cao Hua, a partner at Unity Asset Management, a private equity firm based in Shanghai, said, “The strong performance of leading Chinese EV makers like Zeekr in the US market has boosted investor confidence.” The Hangzhou-based EV manufacturer increased the size of its IPO by 20% in response to the demand. Geely Auto, which plans to purchase up to US$320 million worth of shares in the offering, will see its stake reduced to just over 50% from 54.7%.
However, it’s important to note that the EV market is highly competitive, and Zeekr faces competition from other major players like Tesla, Nio, and Xpeng. Despite these challenges, Zeekr’s strong performance and ambitious expansion plans suggest a positive outlook for the company in both the Chinese and international markets. We will follow up on Zeekr and report back as it makes progress. That’s all for now and thank you for tuning in.
Keywords: #electricvehicle #zeekr #evbatteries
Zeekr IPO could set a precedent for other Chinese EV makers raise funds in the US. Since the demands for EV has been skyrocketed, the potential for the leading EV makers are enormous attracting lots of institutional investors. Is Zeekr IPO set a new trend in EV fund raising in the US? Can Zeekr deliver what it promised to sell more than 200,000 units in 2024? Please tell us what you think about Zeekr IPO and whether they could succeed to deliver the target units. Thank you for watching!
If the IPO is a great way to promote the brand, Zeekr should be able to take this advantage and sell well across the world.
200,000 units in 2024 is a bit aggressive given that BYD, Xiaomi, Huawei, and others are doing extremely well in Q1 this year. Well, that is just a projection so we'll see how Zeekr does in the coming months.
EV competition is extremely fierce in China, and many brands including Zeekr are seeking partnerships across the world to quickly get a foothold before others will. By getting an IPO in NY will allow Zeekr expand to worldwide market a little easier. Congrats!🙂
Zeekr is positioned as a high performance EV and it should be appealing to the younger crowd. It should do well in the US and Europe.
Zeekr is smart to hire a professional racer to promote the brand and looks like they are positioned to attack the international market. Congrats for the successful IPO!