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Zeekr Targets $368M US IPO, Eyes $5.5B Valuation Amid Growth

Zeekr aims for a $368 million US IPO, signaling a major move for Geely's EV brand amidst US-China market tensions.

By Bill Bullington

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5/3, 18:54 EDT
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Key Takeaway

  • Zeekr aims to raise $367.5 million in a US IPO, offering 17.5 million ADS at $18-$21 each, targeting a $5.5 billion valuation.
  • Despite a net loss of $1.17 billion last year, Zeekr reported over 60% revenue growth to $7.3 billion.
  • This IPO tests US investor interest in Chinese firms amid easing regulatory tensions between the US and China.

Zeekr's US IPO Ambitions

Zeekr Intelligent Technology Holding Ltd., a premium electric vehicle (EV) brand under the umbrella of Zhejiang Geely Holding Group Co., has announced its intention to enter the US stock market with an initial public offering (IPO) aimed at raising up to $367.5 million. The company plans to offer 17.5 million American depositary shares (ADS), with each ADS priced between $18 and $21, representing 10 of Zeekr's ordinary shares. This move marks a significant step for the China-based firm, positioning it for a valuation of approximately $5.5 billion at the upper end of the price range, according to its filings with the US Securities and Exchange Commission.

Financial Performance and Market Strategy

In its recent filing, Zeekr disclosed a net loss of $1.17 billion for the last year, despite generating about $7.3 billion in revenue, which reflects a growth of more than 60% from the previous year. The company's product lineup includes the Zeekr 001, a five-seat crossover, the Zeekr X, a compact sport utility vehicle, and the Zeekr 007, a premium sedan. The IPO is being led by notable financial institutions including Goldman Sachs Group Inc., Morgan Stanley, Bank of America Corp., and China International Capital Corp., with plans for the shares to be traded on the New York Stock Exchange under the symbol ZK.

Contextual Challenges and Opportunities

The IPO comes at a time when US investors' appetite for Chinese companies is under scrutiny, amidst ongoing tensions between China and the US over trade, intellectual property, and the future of Taiwan. The listing would be the largest by a China-based company in the US since LianBio's $374 million listing in October 2021. It also tests the waters after a period of regulatory disputes and a crackdown by Beijing on its high-flying startups, which had previously stalled Chinese companies from seeking US listings. However, Beijing's recent softening stance and the resolution of the US accounting watchdog and China's audit dispute in December 2022 have revived prospects for such listings.