((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))
*
Valued at $6.81 billion at listed price First major Chinese listing in the US since 2021
*
Chinese electric vehicle makers seek to boost exports
*
Stocks of electric vehicle makers have been hit hard lately
(Updated prices in title and paragraph 1, added CEO comments in paragraphs 3 and 6-8)
Shares of Zeekr Intelligent Technology ZK.N were reported to open as much as 24% above their IPO price on Friday, giving the China-based electric vehicle maker a potential fully diluted valuation of 6.81 billion of dollars.
It would be the first major listing of a Chinese company in the United States since 2021, amid fierce competition in China among electric vehicle makers, which has hurt their profits, and as many of them They are striving to expand to other markets.
“New York financial markets are very supportive of new energy vehicles. Zeekr is a global brand, and the choice to list in New York once again demonstrates its global capabilities,” said Chief Executive Officer Conghui An, who is also chairman of Zeekr’s parent company, Geely Holding Group.
Zeekr is the premium brand of the Chinese automaker, which also owns Swedish company Volvo Cars and British company Lotus. It was established in 2021 to meet growing demand for high-end models in China and has delivered nearly 200,000 cars to date, according to its IPO filing, mainly in China.
The company is among a number of Chinese automakers, including BYD 002594.SZ, SAIC 600104.SS and Great Wall Motor 601633.SS, which are targeting Europe by launching electric models in an attempt to compete with traditional European manufacturers on their land. Sales of Chinese electric vehicles in Europe have soared in recent years.
Mr. An said Geely aspired to become the Volkswagen Group VOWG.DE of the new energy vehicle era, likening the company to Europe’s top automaker.
Within Geely, Zeekr’s mission is to tackle the luxury electric vehicle market segment, An said.
As of 10:30 a.m., Zeekr stock is expected to open between $24 and $26, down from its IPO price of $21.
Shares of U.S. EV companies have lost a lot of value in recent months, including Tesla TSLA.O , the leading U.S. EV maker, which has fallen 30% this year.
Rivian Automotive RIVN.O has lost 85% since its November 2021 IPO, while Lucid Group LCID.O is left with a quarter of what it got when it signed a deal with a check company in beginning of the year.
IPO UPSIZED
Zeekr, however, increased the size of its IPO, a sign of strong demand from investors. It sold 21 million American depositary shares (ADS) to raise $441 million. It had previously planned to sell 17.5 million ADSs at a price between $18 and $21 per unit.
Since the start of the year, the company’s deliveries have exceeded those of its closest competitors.
Zeekr delivered 49,148 vehicles in the first four months ending April 30, while Xpeng XPEV.N delivered 31,214 units and Nio NIO.N 45,673 cars in the same period, according to regulatory filings and Press Releases.
The IPO comes amid growing tensions between the world’s two largest economies over trade, intellectual property, Taiwan and China’s position in Russia’s war with Ukraine.
The IPO gives Zeekr a fully diluted valuation, which includes securities such as options and restricted stock units, of $5.5 billion, which is at the high end of the targeted range but still below to the 13 billion dollars it obtained after a funding round last year.
The discount from last year’s valuation could help attract investors, said Dan Coatsworth, investment analyst at AJ Bell.
“They are able to buy a growing company at a fraction of last year’s valuation. Everyone loves a good deal”
The number of Chinese companies going public in the United States in recent years has declined, after Chinese ride-hailing giant Didi Global was forced to delist its shares following a backlash from investors. Chinese regulatory authorities.
Beijing has since softened its stance and issued a set of rules last year aimed at reviving such listings, after the US accounting watchdog and China resolved a long-running auditing dispute in December 2022.
