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Equities

Zeekr IPO Raises $441M, Backed by Industry Giants

Zeekr raises $441 million in largest US IPO by a Chinese company since 2021, signaling strong investor confidence in EV market.

By Bill Bullington

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5/9, 16:04 EDT
Bank of America Corporation
Goldman Sachs Group, Inc.
Morgan Stanley
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Key Takeaway

  • Zeekr raises $441 million in a US IPO, selling 21 million ADS at $21 each, showcasing strong investor confidence in the EV market.
  • Strategic investments from Geely Auto, Mobileye, and CATL highlight robust industry support for Zeekr's business model and future.
  • Led by Goldman Sachs and Morgan Stanley among others, the IPO's success marks a significant US market entry for China-based Zeekr (Ticker: ZK).

Zeekr's IPO Success

Zeekr Intelligent Technology Holding Ltd., a premium electric vehicle (EV) brand under the umbrella of Zhejiang Geely Holding Group Co., has successfully completed its initial public offering (IPO), marking a significant milestone in the company's journey. The IPO managed to raise approximately $441 million, with the company selling 21 million American depositary shares (ADS) at $21 each, the upper end of its marketed range. This achievement is notable as it represents the largest U.S. IPO by a China-based company since 2021, underscoring investor confidence in Zeekr and the broader EV market.

The initial plan was to market 17.5 million ADS, each representing 10 of the company's ordinary shares, within a price range of $18 to $21, as detailed in Zeekr’s filings with the U.S. Securities and Exchange Commission. The increased number of shares sold highlights strong market demand for Zeekr's offering.

Strategic Investments

Ahead of the IPO, Zeekr disclosed in its filings that notable companies such as Geely Auto, Mobileye Global Inc., and Contemporary Amperex Technology Co. Ltd. (CATL) expressed interest in investing up to $349 million in the offering. This level of commitment from leading firms in the automotive and technology sectors indicates a robust vote of confidence in Zeekr's business model and future prospects. Such strategic investments are pivotal, as they not only provide financial resources but also potentially pave the way for future collaborations and technological advancements in the EV space.

Lead Underwriters and Trading Debut

The IPO process was spearheaded by a consortium of leading financial institutions, including Goldman Sachs Group Inc., Morgan Stanley, Bank of America Corp., and China International Capital Corp. These underwriters played a crucial role in ensuring the success of the offering, leveraging their expertise and networks to attract a wide array of investors. Zeekr's shares are set to begin trading on the New York Stock Exchange under the ticker symbol ZK, a move that will further enhance the company's visibility and access to capital markets. The successful pricing and anticipated trading debut underscore the market's appetite for new listings, especially in the high-growth EV sector.