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Chinese electric vehicle maker Zeekr priced its initial public offering at $21 a share Thursday, at the top end of its range, according to news reports.
The company will sell 21 million American depository shares to raise $441 million when it begins trading on the New York Stock Exchange on Friday under the ticker ZK, Reuters and Bloomberg News reported, citing sources familiar. The offering sits at the top of Zeekr’s expected range of $18 to $21 a share, revealed in an F-1 filing with the Securities and Exchange Commission earlier this month.
Zeekr, which is backed by Chinese-based automotive group Geely, offers several luxury vehicle models, including an upscale sedan it began delivering in January. Geely will have more than 50% of the company’s voting power after the IPO is complete.
“Through developing and offering next-generation premium BEVs and technology-driven solutions, we aspire to lead the electrification, intelligentization and innovation of the automobile industry,” the company said in its SEC filing.
Zeekr could pose big competition for Tesla, which it reportedly outpaced in car sales in the province of Zhejiang, China, during the first three weeks of April. The province is where its parent company is based.
“Our sales gap with Tesla keeps on narrowing,” Zeekr CEO Andy An told CNBC in an interview last month translated from Mandarin. He said the company plans to expand in Europe and Latin America this year, and it already sells vehicles in Sweden and the Netherlands.
According to the regulatory filing, Zeekr posted $7.28 billion in revenue for 2023 and a loss of $1.16 billion. The company also said it delivered 16,089 units in April.
Zeekr has said it plans to use the proceeds from the offering to develop more advanced battery electric vehicle technologies. Funds will also be used for selling and marketing purposes, such as growing its charging, along with general corporate needs.
Underwriters of the deal include Goldman Sachs, Morgan Stanley, Merrill Lynch and China International Capital.