Posted on 13 May 2024
Chinese smart electric vehicle company Zeekr Intelligent Technology on Friday floated on the New York Stock Exchange and expects to raise $441 million in its initial public offering.
The premium BEV brand priced shares at $21 each, which is the top of the indicated range, reaching a valuation of $5.5 billion. It is planning to sell 21 million shares, Kallanish reports.
The company is owned by Chinese automaker Geely Holding, which also owns Volvo Cars, Polestar and Lotus.
In 2023, Zeekr posted a revenue of $7.2 billion, up 37% from 2022, and a net loss of $1.1 billion, 7% smaller than the previous year.
The IPO, set to close on 14 May, comes at a time of trade wars between the US and China and the negative headlines around EV demand.
However, according to Dan Coatsworth, an investment analyst at AJ Bell, the market is expected to pick up after the current lull, attracting new investors in the meantime.
“While all the headlines around Western electric vehicle manufacturers have been rife with negativity in recent months, Chinese rivals have fared a lot better. Many are reaping the benefits of selling cars at more affordable prices, while also being able to offer more powerful batteries and more advanced technology,” he says.
Chinese manufacturers are supporting a global uptake of EVs thanks to their cheaper models. Last year, over 60% of the electric cars sold in China were already cheaper than their average combustion engine equivalent, according to the International Energy Agency.
Source:Kallanish
