Zeekr Targets $5.13 Billion Valuation in US IPO
Electric vehicle maker Zeekr Intelligent Technology Holding is aiming for a valuation of up to $5.13 billion in its upcoming US initial public offering (IPO). This marks the first major IPO by a Chinese company in the US in over two years.
Zeekr plans to raise up to $367.5 million by selling 17.5 million American depositary shares priced between $18 and $21 each. The IPO will test US investors' appetite for Chinese companies amidst ongoing tensions between the two countries over trade, intellectual property, and the future of Taiwan.
In the first quarter of 2024, Chinese companies raised a mere $46.9 million through six IPOs in the US, a significant drop from the $428 million raised during the same period in 2023. This decline was primarily driven by a long-standing regulatory dispute between the US and China, coupled with a crackdown on Chinese tech companies by the Chinese government.
However, the situation has improved recently. Beijing has softened its stance and released new regulations to encourage Chinese companies to list in the US. This follows the resolution of the audit dispute between the US accounting watchdog and China in December 2022.
Zeekr's last valuation, after a funding round in February 2023, stood at $13 billion. The company has flagged potential risks to investors, including the significant influence of the Chinese government on its business and the intense competition within China's EV market.
Goldman Sachs and Morgan Stanley are among the underwriters for the IPO.