Equities
Zeekr's IPO soars 40%, marking the largest U.S. listing by a China-based company since 2021, with a valuation of $7 billion.
By Bill Bullington
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Zeekr Intelligent Technology Holding Ltd., the high-end electric vehicle (EV) brand under Zhejiang Geely Holding Group Co., experienced a notable surge in its stock price, climbing as much as 40% following its initial public offering (IPO). This event marks the largest U.S. listing by a China-based company since 2021, highlighting a significant moment in the financial markets. The company's American depositary shares (ADS) were initially priced at $26 each, surpassing the marketed range of $18 to $21, and traded at $28.70 apiece as of midday in New York, valuing the company at approximately $7 billion. The IPO's success was underscored by the sale of 21 million ADS, 3.5 million more than initially planned, fetching about $441 million.
The IPO attracted strategic investments from notable industry players such as Geely Auto, Mobileye Global Inc., and Contemporary Amperex Technology Co. Ltd. (CATL), who were interested in subscribing for up to $349 million worth of shares. This strong backing from leading firms in the automotive and technology sectors signifies a robust vote of confidence in Zeekr's business model and its prospects in the EV market. The involvement of these industry giants not only provides Zeekr with significant financial resources but also opens avenues for future technological collaborations and advancements.
The IPO, led by Goldman Sachs Group Inc., Morgan Stanley, Bank of America Corp., and China International Capital Corp., represents a pivotal moment for Zeekr and the broader U.S. IPO market. It adds to a rebound in the U.S. IPO market, which has seen approximately $17 billion raised via listings on U.S. exchanges since the beginning of the year, nearly double the total at this point last year. Zeekr's successful market entry, with shares trading on the New York Stock Exchange under the symbol ZK, is indicative of the market's appetite for new listings, especially in the high-growth EV sector. This event also marks a significant U.S. market entry for China-based Zeekr, showcasing strong investor confidence.
Finance GPT
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