ZEEKR’s Rise in the EV Market
ZEEKR, a youthful player in the electric vehicle (EV) arena, is poised to make a significant mark with its upcoming initial public offering (IPO) on the New York Stock Exchange (NYSE) this week. Established just three years ago as a subsidiary of the Chinese automotive giant Geely Holding, ZEEKR swiftly emerged as a contender in the realm of premium zero-emissions mobility, positioning itself to rival established names like NIO and Tesla.
A Diverse Portfolio and Financial Backing
Despite its brief existence, the company has wasted no time in diversifying its product portfolio. Among its offerings are the flagship 001 shooting brake, the versatile 009 multi-purpose vehicle (MPV), the sleek 007 sedan, and the upcoming electric van, MIX. In February, ZEEKR garnered considerable attention by securing $750 million in Series A funding, setting its valuation at a lofty $13 billion upon completion of the investment.
IPO Details and Market Comparisons
Now, company is taking its next significant step by launching an IPO on the NYSE. The company aims to offer 175,000,000 ordinary shares (or 17,500,000 American Depository Shares) at a price range of $18 to $21 per ADS, potentially raising up to $367 million. This move reflects a strategic decision by ZEEKR to tap into the US market, where several of its competitors, such as NIO, XPeng Motors, and Li Auto, are already traded.
However, ZEEKR’s targeted valuation of $5.13 billion for the IPO is notably lower than earlier projections. Last fall, the company anticipated a valuation of around $18 billion for its US IPO, highlighting the evolving dynamics of the Chinese EV sector in the American market. Nevertheless, ZEEKR remains optimistic about its prospects, with plans to trade under the ticker symbol “ZK” and ring the opening bell in New York City on May 10, marking a significant milestone in its journey towards global recognition in the EV space.
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