Zeekr’s NYSE Debut Signals Strong Demand for Chinese EV Maker Amid Price War

The initial public offering (IPO) of Chinese electric vehicle (EV) maker Zeekr Intelligent Technology is set to debut on the New York Stock Exchange (NYSE) on Friday, marking the first significant US listing by a Chinese company since 2021. The offering indicates strong demand from investors, as Zeekr upsized its IPO, selling 21 million American depositary shares (ADSs) at $21 each, raising $441 million. This is higher than the 17.5 million ADSs the company originally intended to sell at a price between $18 and $21 apiece. The IPO values Zeekr at $5.5 billion at the upper end of its targeted range, although this is still lower than the $13 billion valuation it received during its previous funding round. The move comes amidst a price war in China that has left automakers seeking opportunities outside of their domestic markets. The listing will serve as a gauge for investor appetite towards EV makers, particularly as other high-profile EV startups, such as Rivian Automotive and Lucid Group, have suffered substantial losses since their Initial Public Offerings (IPOs). However, the number of Chinese firms listing in the US has decreased in recent years, following the case of Didi Global, which was forced to withdraw its shares after encountering regulatory opposition from Chinese authorities. Beijing recently published guidelines aimed at rekindling such listings, following the resolution of a prolonged audit dispute between the US accounting watchdog and China in December 2022. (Source: Reuters)