Geely’s EV maker seeks to raise US$368mil in IPO
Published on: Saturday, May 04, 2024
By: Bloomberg
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Zeekr’s IPO will be the biggest by a China-based firm in the US since 2021. (Reuters pic)
The EV maker said in a filing Friday that it plans to market 17.5 million American depositary shares for US$18 to US$21 apiece in what will be the biggest US offering by a China-based firm since 2021. Each ADS will represent 10 of the company’s ordinary shares.
Zeekr would have a market value of about US$5.5 billion at the top of that range based on its filings with the US Securities and Exchange Commission.
Geely Auto, Mobileye Global and Contemporary Amperex Technology Co Ltd are interested in subscribing for as much as US$349 million worth of shares in the offering, Zeekr said in its filings.
Zeekr’s plans add to a stream of IPOs that have put listings on pace for the best year since 2021, when offerings set an all-time record.
The US$15.7 billion raised in 72 IPOs on US exchanges since Jan 1 is now almost double the total at this point last year, with half of 2023’s volume coming from the blockbuster offering by Johnson & Johnson spinoff Kenvue Inc, according to data compiled by Bloomberg.
Small, rare
US listings by Chinese companies have been small and rare in the years since a crackdown following the US$4.4 billion offering by ride-hailing giant Didi Global Inc, which delisted from the New York Stock Exchange less than a year after its 2021 IPO.
Zeekr’s IPO would be the biggest by a China-based firm in the US since LianBio’s US$374 million listing, including overallotment shares, later that year, the data show.
Although Chinese regulators have since eased curbs on overseas listings so long as the companies are compliant with the rules, no issuer based in the country raised more than US$200 million last year in the US, according to data compiled by Bloomberg.
In February, Geely took automaker Lotus Technology Inc public via a merger with a special purpose acquisition company. That followed Geely’s Polestar Automotive Holding going public in a SPAC deal in 2022, after Geekt listed its Volvo Car in Stockholm the previous year.
Revenue gain
Last year, Zeekr had a net loss of US$1.17 billion on about US$7.3 billion in revenue, with the latter increaseing more than 60% from 2022, according to its filings.
The Zeekr lineup includes the 001, a five-seat crossover and the X, a compact sport utility vehicle. The brand has also launched the 007, a premium sedan.
The offering is being led by Goldman Sachs Group, Morgan Stanley, Bank of America and China International Capital. The company plans for its shares to trade on the New York Stock Exchange under the symbol ZK.
