Chinese EV maker Zeekr prices IPO at $21, at the top end of range

Chinese electric vehicle maker Zeekr priced its initial public offering at $21 a share on Thursday, at the high end of its pricing range.

The company, which will begin trading on the New York Stock Exchange under the ticker ZK on Friday, will sell 21 million American depositary shares to raise $441 million. The offering is at the top of Zeekr’s expected range of $18 to $21 per share. Revealed in F-1 documents with the U.S. Securities and Exchange Commission earlier this month.

Zeekr is backed by Chinese auto group Geely and offers a variety of luxury models, including a premium sedan that began deliveries in January. After the IPO is completed, Geely will own more than 50% of the company’s voting rights.

“We aspire to lead the electrification, intelligence and innovation of the automotive industry by developing and delivering the next generation of premium pure electric vehicles and technology-driven solutions,” the company said in an SEC filing.

Zeekr could bring stiff competition TeslaThe company reportedly sold more cars in China’s Zhejiang province than in the first three weeks of April. The province is where its parent company is located.

“The sales gap between us and Tesla continues to narrow,” Zeekr CEO Andy An told CNBC last month. He said the company plans to expand in Europe and Latin America this year and currently sells cars in Sweden and the Netherlands. .

Zeekr reported revenue of $7.28 billion and a loss of $1.16 billion in 2023, according to regulatory filings. The company also said it delivered 16,089 units in April.

Zeekr said it plans to use proceeds from the offering to develop more advanced battery electric vehicle technology. Funds will also be used for sales and marketing purposes, such as increasing fees and general business needs.

Underwriters on the deal include Goldman Sachs, Morgan Stanley, Merrill Lynch and China International Capital Corporation.