Chinese electric vehicle manufacturer Zeekr has set its initial public offering price at $21 per share, according to reports from various news sources. The company is set to raise $441 million by selling 21 million American depository shares when it starts trading on the New York Stock Exchange under the ticker symbol ZK. This pricing falls at the upper end of Zeekr’s anticipated range of $18 to $21 per share, as disclosed in its F-1 filing with the Securities and Exchange Commission earlier this month.
Backed by the Chinese automotive conglomerate Geely, Zeekr offers a range of luxury vehicle models, including a high-end sedan that it began delivering in January. After the IPO, Geely will hold more than 50% of the company’s voting power.
In its SEC filing, Zeekr expressed its ambition to lead the electrification, intelligentization, and innovation of the automobile industry through the development of next-generation premium battery electric vehicles (BEVs) and technology-driven solutions.
Zeekr is positioning itself as a significant competitor to Tesla, reportedly surpassing Tesla’s car sales in the Zhejiang province of China in the first three weeks of April, where its parent company is headquartered. Zeekr CEO Andy An revealed plans for expansion into Europe and Latin America this year, with existing sales operations in Sweden and the Netherlands.
According to its regulatory filing, Zeekr reported $7.28 billion in revenue for 2023, with a net loss of $1.16 billion. In April alone, the company delivered 16,089 units. Proceeds from the IPO will be allocated towards the development of advanced battery electric vehicle technologies, as well as for sales and marketing initiatives, including expanding charging infrastructure, and for general corporate purposes.
Goldman Sachs, Morgan Stanley, Merrill Lynch, and China International Capital are among the underwriters for the offering.
