Chinese electric vehicle manufacturer Zeekr has priced its initial public offering at $21 per share, which is at the top end of its previously stated range. The company is set to sell 21 million American depository shares, raising a total of $441 million once it begins trading on the New York Stock Exchange under the ticker symbol ZK. This move positions Zeekr as a strong contender in the electric vehicle market, potentially challenging industry giants like Tesla.

Zeekr, which is supported by Geely, a prominent Chinese automotive group, specializes in luxury electric vehicles. The company’s product lineup includes high-end sedan models, with a focus on advanced technology and innovation. With Geely holding over 50% of the voting power post-IPO, Zeekr is poised to make significant strides in the global electric vehicle sector.

Market Competition and Expansion Plans

Despite being a relatively new player in the market, Zeekr has quickly gained traction, even surpassing Tesla in car sales in Zhejiang, China. This success has prompted the company to consider further expansion into key markets like Europe and Latin America. Already selling vehicles in countries like Sweden and the Netherlands, Zeekr aims to solidify its presence on a global scale.

According to regulatory filings, Zeekr reported revenue of $7.28 billion in 2023, along with a loss of $1.16 billion. Despite its financial challenges, the company remains committed to advancing its battery electric vehicle technologies. The proceeds from the IPO will be utilized for research and development, marketing initiatives, expanding charging infrastructure, and addressing general corporate needs.

Underwriters and Investment Partners

Leading the IPO are reputable firms such as Goldman Sachs, Morgan Stanley, Merrill Lynch, and China International Capital. These underwriters are confident in Zeekr’s potential for growth and innovation within the electric vehicle industry. By partnering with key investors, Zeekr aims to accelerate its market presence and achieve long-term sustainability.

Zeekr’s IPO pricing at $21 per share showcases investor confidence in the company’s capabilities and future prospects. With a strong backing from Geely and a clear vision for expansion, Zeekr is well-positioned to disrupt the electric vehicle market and emerge as a key player in the industry.

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