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Chinese EV firm Zeekr seeks to raise $368M in IPO

Zeekr electric vehicles at an auto show.

Zeekr electric vehicles. Photo: Courtesy of Geely.

Zeekr, the EV brand from Chinese auto giant Geely, is looking to raise up to $367.5 million in an IPO according to a filing from Friday.

Why it matters: The listing, which could be the biggest from a Chinese firm in years, comes at a time of greater scrutiny of Chinese-owned companies operating in the U.S.

  • The listing also shows how companies are starting to test the public markets again and are getting creative.

Zoom in: Zeekr's potential IPO is less aggressive and somewhat unusual compared to its reported plans last year to raise $1 billion.

  • The filing says that Zeekr plans to sell 17.5 million American depositary shares for $18 to $21 apiece, and will list the ADR shares on the New York Stock Exchange.
  • Parent company Geely Auto, self-driving tech company Mobileye Global and battery giant Contemporary Amperex Technology (CATL) say they are interested in subscribing for as much as $349 million worth of shares in the offering. Geely says it alone is interested in $320 million in shares.
  • Zeekr is targeting a valuation of up to $5.13 billion in the offering, which is lower than the valuation it sought last year.

Of note: Zeekr grew its annual revenue by more than 60% to $7.3 billion between 2022 and 2023 and had a net loss of $1.17 billion, according to Bloomberg.

Catch up quick: Last year Zeekr raised $750 million from private investors including Mobileye founder and CEO Amnon Shashua, Guangzhou city's investment arm, and CATL.

  • The public markets have been cool to electric vehicle companies over the past year, following the sharp declines of a handful of SPACs from EV makers.

The big picture: Chinese automakers are taking the EV industry by storm, with low-cost, competitive vehicles.

  • A successful IPO on a U.S. exchange could go far to support the luxury Zeekr brand and help it compete with Tesla.
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