Zeekr’s Upsized IPO Signals Renewed Interest in Chinese EV Makers amid Challenges

The recent IPO of Zeekr Intelligent Technology, an electric-vehicle maker based in China, is significant as it marks the first major U.S. listing by a Chinese company since 2021. The strong demand from investors, indicated by the upsizing of the IPO, comes amidst a challenging environment for EV makers, who have seen profits being eroded due to a price war in China. The plunging valuations of some high-flyers, such as Rivian Automotive and Lucid Group, could spook investors. However, Zeekr’s IPO gives it a fully diluted valuation of $5.5 billion at the high end of its targeted range, although this is still lower than the $13 billion it fetched during a previous funding round. This IPO could serve as a barometer to gauge investor interest in EV makers, especially as Beijing releases new rules to revive Chinese company listings in the U.S., following a previous backlash from Chinese regulators against Chinese firms going public overseas.