May 7, 2024 - Chinese electric vehicle maker Zeekr Intelligent Technology Holdings Ltd is set to raise up to US$367.5 million in an initial public offering ("IPO") in New York, which was scheduled to close its bookkeeping on Thursday, EqualOcean has learned. 367.5 million, and will still begin trading in New York on Friday, according to people familiar with the matter. Zeekr declined to comment in the face of information that its trading book was several times oversubscribed.
Originally an electric-vehicle subsidiary of Chinese automaker Geely, Zeekr was spun off as a standalone company in 2021, focusing on high-end users in the new-energy tram segment. In recent years, three new Chinese car-making forces, BYD, Ideal and Xiaopeng Auto, have landed in the U.S. Zeekr is restarting its U.S. IPO this time, filing a new version of its prospectus with the U.S. Securities and Exchange Commission (SEC) on May 3 (EST), and plans to become the fourth new Chinese car-making force to go public in the U.S. The public offering corresponds to a valuation of about $5.13 billion for Zeekr.
According to the prospectus, Zeekr plans to use the funds raised in three ways: about 45% of them will be used for research and development of more advanced pure electric vehicle technology and expansion of product portfolio; about 45% will be used for sales and marketing, and expansion of service and charging network; and about 10% will be used for general corporate purposes, including working capital needs. From the content of the prospectus, pole Zeeker performance trends in recent years, 2023 total operating income of 51.7 billion yuan, an increase of 62% year-on-year; 2023 R & D investment of nearly 8.369 billion yuan, R & D investment year on year and higher than friends; 2023 sales growth to 118,000 vehicles. However, it is still necessary to see that Zeekr needs to replenish funds through the IPO, Zeekr's net loss in 2023 was 8.26 billion yuan, and it needs to obtain enough cash through social financing, the IPO is still able to raise more funds for Extreme Krypton as well as to enhance its brand awareness and market influence.
However, given the rising tensions between the two huge economies of China and the U.S. regarding trade, politics, etc., investor interest in mainland Chinese companies is waning, with six Chinese companies conducting IPOs in the U.S. in the first quarter of 2024, raising $46.9 million, much lower than the $428 million raised in the same period in 2023. Meanwhile, investors are worried about the fierce competition in China's electric vehicle market, anti-dumping investigations and possible future tariff hikes in the U.S., the European Union and other countries and regions against China's electric vehicle industry, and are skeptical about the future of China's new energy industry.