May 30, 2024

Shares of Zeekr, the premium electric vehicle arm of China’s Geely Auto, are set to begin trading on Friday after the company expanded its initial public offering (IPO).

Zeekr — formally known as Zhejiang Zeekr Intelligent Technology Co., Ltd. — on Thursday sold 21 million American depositary shares (ADS) at $21 per share, raising $441 million. The EV maker had initially sought to raise up to $367.5 million by selling 17.5 million ADS for between $18 and $21 apiece. Each ADS is the equivalent of 10 ordinary shares.

The IPO gives Zeekr a fully diluted valuation of $5.5 billion at the high end of its targeted range, Reuters reports. That’s much lower than its $13 billion valuation after a funding round in February 2023. However, Zeekr is still the biggest public listing in the U.S. since Didi Global’s $4.4 billion IPO in 2021.

Geely, EV battery maker CATL, and Israeli self-driving technology company Mobileye were interested in subscribing for up to $349 million of the ADS offered, Zeekr said in regulatory filings earlier this week.

“Zeekr’s listing on the world’s most active and influential capital market is an important milestone in the company’s global journey,” Zeekr CEO Conghui An said in a statement. “Today, Zeekr becomes a truly global enterprise ready to accelerate its expansion and meet the growing global demands for smart electric mobility.”

The company will trade on the New York Stock Exchange under the “ZK” stock ticker. Zeekr said funds raised from its listing will help it develop new advanced products and technology, as well as support its marketing and charging network efforts.

Zeekr’s public listing would have it join several other public companies owned by Geely, including Swedish carmakers Volvo and Polestar. Lotus Technology launched on the Nasdaq in February through a $7 billion blank-check deal; the company is jointly owned by Geely and Malaysia’s Etika Automotive.

Zeekr would also join at least three competitors — Xpeng, Li Auto, and Nio — in becoming a publicly listed company in the U.S. All three EV makers are rivals to Tesla in China, with Zeekr telling CNBC in April that it has “already outsold Tesla in some areas” of China.

Zeekr’s lineup of premium EVs includes the 007 sedan, the 001 five-seat crossover, and the X compact SUV. The company has sold more than 240,000 models to date, Zeekr said Friday.

The company is looking to grow its presence in Europe, where it currently only sells EVs in Sweden and the Netherlands, and Asia. An told CNBC last month that Zeekr is “actively deploying” in Latin America, without elaborating.

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