Chinese EV maker Zeekr's shares open 24% above IPO price
Zeekr (ZK.N), opens new tab shares opened nearly 24% above their IPO price on Friday in a strong start for the EV maker, the first major U.S. market debut by a China-based company since 2021.
Its first day of trading comes ironically as U.S. President Joe Biden's administration plans on boosting tariffs on Chinese vehicle imports to the United States.
"The capital markets in New York are very favorable for new energy vehicles. Zeekr is a global brand, and choosing to list in New York further demonstrates its global capabilities," said CEO Conghui An, who is also the president of Zeekr's parent company, Geely Holding Group.
Zeekr is the premium brand of Chinese automaker Geely, which also owns Sweden's Volvo Cars and the UK's Lotus. It was formed in 2021 to tap into growing Chinese demand for premium models and has since delivered nearly 200,000 cars mostly in China, according to its IPO filing.
Fierce competition in China among domestic rivals and Tesla (TSLA.O), opens new tab has eroded profits at EV makers, prompting them to look at other markets for expansion.
Zeekr is valued at a fully diluted valuation of $6.8 billion, or about half the $13 billion it fetched after a funding round last year.
Chinese automakers BYD (002594.SZ), opens new tab, SAIC (600104.SS), opens new tab and Great Wall Motor (601633.SS), opens new tab all are targeting Europe, rolling out electric models as they seek to compete with legacy European automakers on their turf. Chinese EV sales in Europe have soared in recent years.
Zeekr CEO said Geely aspires to become the Volkswagen Group (VOWG.DE), opens new tab of this era of new energy vehicles, comparing the company to Europe's top automaker.
Within Geely, Zeekr's mission is to address the luxury EV market segment, he added.
Zeekr's stock opened at $26, compared with its IPO price of $21. It was last trading at $27.30.
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