Geely's Zeekr Secures US$441 Million in Landmark US IPO

In a significant financial move, Geely Automobile Holdings Ltd's premium electric vehicle (EV) division, Zeekr, has successfully upsized its initial public offering (IPO) to raise US$441 million. This IPO marks the most considerable Chinese listing in the United States since mid-2021, showcasing a renewed interest in China's EV space among investors. The upsizing, amounting to a 20 percent increase, was implemented to meet the burgeoning demand for Zeekr's shares.

Zeekr’s IPO Success Amidst Market Volatility

The stock, which is scheduled to debut on the New York Stock Exchange this Friday, is launching into a market that has been characterized by significant volatility. Nevertheless, Zeekr’s IPO has emerged as a testament to the strong investor confidence in the long-term prospects of China's EV industry. The IPO signals a positive reception for Chinese companies on Wall Street despite geopolitical tensions and regulatory challenges that have affected cross-border investments.

Fundraising and Future Prospects

The capital raised from the IPO is expected to be channeled towards research and development, as well as expanding Zeekr's market presence. The injection of new funds is crucial for the company as it navigates the competitive landscape of the EV market and aims to position itself as a leader in the production of high-end electric vehicles.

The IPO details were disclosed by two sources with direct knowledge of the matter, who preferred to remain anonymous as the information is not yet public. Despite the decline in Chinese companies going public in the US, Zeekr's IPO has been perceived as a significant stride, indicating potential for more such listings in the future.

IPO, EV, Geely