Zeekr's final pricing sits at the upper end of the range at $21 per ADS, valuing the company at about $5.13 billion, half of Nio's value.
(Image credit: Zeekr)
Zeekr (NYSE: ZK), the premium electric vehicle (EV) subsidiary of Geely Holding Group, officially listed on the New York Stock Exchange today, becoming the latest Chinese EV maker to go public in the US.
Zeekr, which trades under the ticker symbol ZK, is expected to begin trading on the NYSE soon.
The company originally planned to issue 17.5 million ADSs (American depositary shares) in its US IPO with a price range of $18 to $21 per ADS, seeking to raise as much as $367.5 million.
Zeekr was ultimately priced at the upper end of the range at $21 per ADS, with each ADS representing 10 ordinary shares.
As a result of the oversubscription, Zeekr expanded the size of its IPO to raise $441 million by offering a total of 21 million ADSs at $21 per share.
If the underwriters exercise their over-allotment option, Zeekr's offering will further expand to 24.15 million ADSs, raising about $507 million.
The IPO pricing values Zeekr at $5.13 billion, about half of Nio's (NYSE: NIO) current market capitalization of $10.7 billion.
Xpeng (NYSE: XPEV) and Li Auto (NASDAQ: LI) currently have market capitalizations of $7.5 billion and $28.4 billion, respectively.
Zeekr is a premium EV brand launched on April 15, 2021, by Geely Holding.
Prior to the launch of Zeekr, Geely Holding had already launched its Sustainable Experience Architecture (SEA), a five-year investment of more than RMB 20 billion ($2.8 billion).
Zeekr's revenue for 2021, 2022 and 2023 were RMB 6.5 billion, RMB 31.9 billion and RMB 51.7 billion, respectively.
It had net losses of RMB 4.51 billion, RMB 7.66 billion and RMB 8.23 billion in those three years, respectively.
The company's revenue from vehicle sales in 2021, 2022 and 2023 were RMB 1.54 billion, RMB 19.67 billion and RMB 33.91 billion, respectively, with gross margins of 1.8 percent, 4.7 percent and 15.0 percent, respectively.
Zeekr seeks to turn a profit in 2024 under Hong Kong financial reporting standards, Geely Auto said on March 20 in an earnings report.
($1 = RMB 7.2263)
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