China’s Electric Vehicle Zeekr to start trading at NYSE after upsized IPO

Shares of China’s Zeekr Intelligent Technology were scheduled to start trading on the New York Stock Exchange on Friday after the electric-vehicle maker priced its initial public offering at the top end of its marketed range.

The debut would mark the first major U.S. listing by a Chinese company since 2021 and would test the investor appetite for such companies.

It would also be a barometer to gauge interest for EV makers, which have seen profits being eroded due to a fierce price war in China that has left automakers searching for opportunities outside their domestic markets.

A plunge in valuations of some high-flying names in the space could also spook investors. Rivian Automotive has lost 85% since its IPO in November 2021, while Lucid Group is left with a fourth of what it fetched when it signed a deal with a blank-check firm earlier that year.

Zeekr, however, upsized its IPO, indicating strong demand from investors. It sold 21 million American depositary shares (ADSs) at $21 each to raise $441 million. It had earlier planned to sell 17.5 million ADSs at a price between $18 and $21 apiece.

The IPO gives Zeekr a fully diluted valuation, which includes securities such as options and restricted stock units, of $5.5 billion at the high end of its targeted range, but still lower than the $13 billion it fetched after a funding round last year.

The number of Chinese companies that have pursued stock market flotations in the United States in the past few years has dropped, after Chinese ride-hailing giant Didi Global was forced to delist its shares following a backlash from Chinese regulators.

Beijing has since softened its stance and released a set of rules last year to revive such listings, after the U.S. accounting watchdog and China resolved a longstanding audit dispute in December 2022.


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