ZEEKR's IPO valuation may exceed USD 5 billion, with Geely and CATL participating as cornerstone investors.
On May 3, Eastern Time, ZEEKR Intelligent Technology updated its prospectus for the Red Herring version, and plans to officially list on the New York Stock Exchange with the stock code "ZK" on May 10.
ZEEKR plans to issue 17.5 million American Depositary Shares (ADS) in this IPO, with an issuance range of USD 18 to USD 21 per ADS. Calculated at the upper end of this issuance range, ZEEKR may raise up to USD 367.5 million through this IPO (excluding the "greenshoe option"), and if the over-allotment option is exercised, the total fundraising amount may reach up to USD 422 million.
Geely is expected to subscribe to ADS worth up to USD 320 million in this IPO, while Mobileye and CATL plan to subscribe to ADS worth up to USD 10 million and USD 19.08 million, respectively. The three together are expected to subscribe to ADS worth up to USD 349.08 million. Calculated at the upper end of the issuance range, ZEEKR's IPO valuation may reach USD 5.13 billion.
However, even though ZEEKR is already a relatively high-quality target in the new energy vehicle track, the entire IPO issuance plan for ZEEKR still cannot be described as "smooth." On the one hand, its expected fundraising amount has been repeatedly reduced, from an initial over USD 1 billion to subsequent USD 500 million and finally to USD 367.5 million, and the proportion of market-oriented public offering is extremely low. On the other hand, the IPO valuation of around USD 5 billion still represents a significant discount compared to its previous valuation of USD 13 billion. Of course, the possibility of increasing the issuance range and scale due to hot subscription this week cannot be ruled out. However, for domestic enterprises planning to go public in the US in the future, the IPO preparation of the management team still has a long way to go.
ZEEKR was established in March 2021, and its current product portfolio includes models such as ZEEKR 001, ZEEKR 001FR, ZEEKR 009, ZEEKR X, and ZEEKR 007. Among them, the ZEEKR 001, released in April 2021, as ZEEKR's first model, targets the high-end pure electric vehicle market. According to Frost & Sullivan's report, the ZEEKR 001 is the world's first mass-produced pure electric vehicle with a CLTC range of over 1000 kilometers. In November 2022, ZEEKR launched the ZEEKR 009 as its second model, positioning it as a luxurious six-seater MPV, the world's first high-end MPV based on a pure electric platform. In April of this year, ZEEKR introduced the ZEEKR 009 (Glorious Edition), with enhanced safety, privacy, and intelligence. In the same month, ZEEKR also released the MPV model ZEEKR MIX.
In addition, in April 2023, ZEEKR released the compact SUV ZEEKR X; in October of the same year, it unveiled the latest pure electric hunting supercar, ZEEKR 001FR, the world's first hunting vehicle based on a pure electric platform capable of performing a tank turn, and also the fastest accelerating mass-produced pure electric vehicle within China's borders. In November, ZEEKR launched its first pure electric luxury sedan, ZEEKR 007, and began deliveries in January of this year.
It is worth mentioning that the ZEEKR 001 achieved a total delivery of 10,000 units in less than four months after its initial delivery. According to Frost & Sullivan's report, this is one of the fastest delivery speeds among major high-end new energy vehicles and high-end pure electric vehicles in China. In October 2022, ZEEKR delivered 10,119 units of the ZEEKR 001 to the market, making it the first high-end pure electric vehicle brand in China to achieve a monthly delivery volume of over 10,000 units.
As of December 31, 2023, ZEEKR has delivered a total of 196,633 vehicles, making it one of the fastest brands in the high-end pure electric vehicle market in China from October 2021 to December 2023.
In addition, to enhance the consumer experience, ZEEKR has adopted a direct-to-consumer (DTC) sales model instead of a dealership model. As of December 31, 2023, ZEEKR has 24 ZEEKR Centers, 240 ZEEKR Spaces, 31 ZEEKR Delivery Centers, and 45 ZEEKR Houses. As of the same date, ZEEKR has established 882 charging stations in over 130 cities in China and, with the support of third-party charging stations, has cumulatively covered approximately 610,000 charging piles in over 340 cities in China.
Financial data shows that from 2021 to 2023, ZEEKR's total revenues were CNY 6.527 billion, CNY 31.899 billion, and CNY 51.673 billion, respectively. In 2023, ZEEKR's gross profit margin for complete vehicles was 15.0%, an increase of over 10 percentage points compared to 2022.
In its prospectus, ZEEKR stated that approximately 45% of the net proceeds from the IPO fundraising will be used for advancing pure electric vehicle technology and expanding the product portfolio; approximately 45% will be allocated to sales and marketing, as well as expanding service and charging networks; and approximately 10% will be used for general corporate purposes.