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Electric & new energy vehicles
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Geely’s EV unit Zeekr raises US$441 million at top end of New York IPO price range in biggest Chinese stock offering since 2021

  • Carmaker raised its IPO size by 20 per cent to accommodate demand from investors, sources said
  • Zeekr’s IPO is the largest by a Chinese company in the US since Full Truck Alliance raised US$1.6 billion in June 2021

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People walk past a booth of Zeekr, Chinese automaker Geely’s premium EV brand, at a shopping mall in Beijing in November 2023. Photo: Reuters
Daniel Renin Shanghai
Zeekr Intelligent Technology, the premium electric-vehicle (EV) unit controlled by Hong Kong-listed Geely Automobile, raised about US$441 million (HK$3.4 billion) after upsizing its stock offering in New York following strong demand from global investors.

The Chinese carmaker sold 21 million American depositary shares (ADS) at US$21 each, the top end of the price range of US$18 to US$21, according to two executives briefed on the matter. The company earlier filed to sell 17.5 million ADS, and granted its underwriters an option to sell an additional 2.625 million ADS, according to its regulatory filing on May 3.

The stock is due to start trading on the New York Stock Exchange on Friday. The IPO, which values Zeekr as a whole at US$5.1 billion, is the largest by a Chinese company in the US since Full Truck Alliance raised US$1.6 billion from its New York listing in June 2021, according to exchange data.

The Zeekr MIX on display at the Beijing Auto Show on April 26, 2024. Photo: Bloomberg
The Zeekr MIX on display at the Beijing Auto Show on April 26, 2024. Photo: Bloomberg

“Appetite for leading Chinese EV makers remains strong in the US,” said Cao Hua, a partner at Unity Asset Management, a Shanghai-based private equity firm. “Zeekr’s improved performance in China recently has given investors the confidence to subscribe to the IPO.”

Geely declined to comment when contacted on its official WeChat social media platform.

The EV maker, based Hangzhou in eastern Zhejiang province, increased the IPO size by 20 per cent, according to people involved in the matter. Geely Auto, which indicated it would buy up to US$320 million worth of equity in the offering, will dilute its stake to just above 50 per cent from 54.7 per cent.

Geely established Zeekr in 2021 and started delivering its Zeekr 001 in October 2021 and its second model Zeekr 009 in January 2023 and its compact SUV called Zeekr X in June 2023. Recent additions to its line-up include Zeekr 009 Grand and its multipurpose vehicle Zeekr MIX, both unveiled last month.

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