Zeekr is preparing an IPO on Wall Street. The Geely-affiliated brand hopes to raise more than $367 million with the placement of new shares on Wall Street. This is reported by the Reuters news agency.
The price per share is expected to be between $18 and $21, valuing the company at approximately $5 billion. In December 2022, Zeekr also announced an IPO, at the time the Chinese company wanted to raise $1 billion at a valuation of $10 billion. The IPO was canceled at the last minute. Zeekr referred to ‘the miserable stock market climate’.
A number of existing Zeekr shareholders, including Geely Auto, Mobileye and Catl, have already committed to purchasing a large portion of Zeekr’s shares (USD 349 million). This leaves $18.5 million in Zeekr shares for private investors.
Geely brands
Zeekr will be the largest IPO by a Chinese company on Wall Street in the past three years. However, according to the economic daily De Tijd, the question remains how much interest there will be in Zeekr. Interest in electric cars in the European and American markets is decreasing.
In addition, investors see that other Geely brands are performing less well on the stock market. Polestar’s share price is now at $0.15: a decline of 85 percent compared to the value at which it went public three years ago. Volvo Cars lost almost half of its valuation in its three-year stock market career. Lotus, which only went to Wall Street in February, has already lost half of its initial valuation.
Zeekr opened a new showroom at the end of last year in the former building of department store V&D.
Zeekr is one of the newcomers to the Dutch market and is therefore included in the AM Power Ranking in which the success rate of all new brands is estimated. Zeekr’s chance of success is ‘small/reasonable’. Read more here.
