China’s Zeekr seeks up to $5.13 bln valuation in US IPO

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China Zeekr Valuation

Electric vehicle maker Zeekr Intelligent Technology Holding said on Friday it was targeting a valuation of up to $5.13 billion in its U.S. initial public offering (IPO), the first major floatation of a China-based company in more than two years.

Zeekr is looking to raise up to $367.5 million by selling 17.5 million American depositary shares (ADSs) priced between $18 and $21 each.

The IPO will test investors’ appetite for Chinese companies, given the simmering tensions between the two biggest economies in the world over trade, intellectual property and the future of Taiwan.

Six IPOs of Chinese companies raised $46.9 million in the U.S. during the first quarter of 2024, down from $428 million at the same time last year, according to Dealogic data.

A longstanding regulatory dispute between the U.S. and China, coupled with a crackdown from Beijing on some of its high-flying startups, had stalled Chinese companies from seeking U.S. listings.

Beijing has since softened its stance and released a set of rules last year to revive such listings, after the U.S. accounting watchdog and China resolved the audit dispute in December 2022.

Zeekr was last valued at $13 billion after a funding round in February last year.

Risks it flagged to investors included how the Chinese government exerted substantial influence over the conduct of its business and intense competition in China’s EV market.

Consequently, strategic decisions post-IPO are crucial for sustaining Zeekr’s growth trajectory. Hence, Zeekr’s valuation journey underscores the evolving dynamics of the global EV market.
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