Zeekr Intelligent Technology, a subsidiary of Chinese automotive giant Geely, successfully launched its initial public offering (IPO) in the United States, securing $441 million by pricing at the upper limit of its projected range.

The premium electric vehicle (EV) maker offered 21 million American depositary shares at $21 each on Thursday, a source close to the matter revealed, preferring to remain unnamed due to the private nature of the discussions.

The IPO has positioned Zeekr with a fully diluted market valuation of around $5.5 billion, which accounts for equity derivatives like options and restricted stock units. Excluding these dilutive effects, the firm is valued at approximately $5.1 billion.

Zeekr’s IPO Surges on US Market Debut, Signaling Strong Global Demand for Chinese EVs

Zeekr Intelligent Technology, a leader in the Chinese electric vehicle (EV) industry, recently accelerated the closure of investor orders for its U.S. IPO due to substantial demand, concluding the bookbuilding phase a day ahead of schedule, as reported by Reuters. This fervent interest resulted in the IPO being multiple times oversubscribed, although the offering size was relatively modest compared to other major Chinese listings in New York. Despite the high subscription rate, skepticism remains about the near-term prospects of other Chinese firms listing in the U.S., particularly given the current geopolitical and economic climate.

• Early Order Closure: Zeekr’s IPO drew early completion due to high demand.
• Market Comparison: The offering was smaller relative to past major Chinese IPOs in New York.
• Future Listings: Analysts remain cautious about other Chinese companies listing in the U.S. soon.

Sumeet Singh from Aequitas Research pointed out that a resurgence in the Hong Kong market would be a necessary precursor to more U.S. listings, which are unlikely until after the U.S. elections. Despite the successful IPO, Zeekr’s valuation stands at a reduced $5.5 billion, a significant drop from the $13 billion valuation last year when it raised $750 million.

Since launching its first vehicle in October 2021, Zeekr has quickly risen to prominence in the EV market. By the end of last year, the company had delivered nearly 196,633 vehicles, mostly within China. This year, Zeekr has continued to outperform rivals, delivering 49,148 vehicles in the first four months, surpassing both Xpeng and Nio.

This IPO not only marks Zeekr’s robust entry into the U.S. market but also serves as a critical test for EV manufacturers facing intense competition and shrinking profits due to a price war in China. These manufacturers are now increasingly looking to international markets to bolster their growth.