Zeekr Targets $5.13 Billion Valuation in US IPO
Zeekr Intelligent Technology Holding, a Chinese electric vehicle maker, announced its intention to go public in the United States, aiming for a valuation of up to $5.13 billion. This marks the first major IPO by a China-based company in the US market in over two years.
Zeekr plans to raise up to $367.5 million by offering 17.5 million American depositary shares priced between $18 and $21 each. The IPO will serve as a test of US investor appetite for Chinese companies amidst ongoing tensions between the two nations over trade, intellectual property, and the future of Taiwan.
In the first quarter of 2024, Chinese companies raised a mere $46.9 million through IPOs in the US, a significant drop from the $428 million raised during the same period in 2023. This decline can be attributed to a long-standing regulatory dispute between the US and China, coupled with a crackdown by Beijing on its high-flying startups.
However, Beijing has recently softened its stance and released new regulations aimed at reviving such listings. This shift follows the resolution of the audit dispute between the US accounting watchdog and China in December 2022.
Zeekr's last valuation, following a funding round in February 2023, stood at $13 billion. The company has flagged potential risks to investors, including the Chinese government's substantial influence over its business operations and the intense competition within China's EV market.
Goldman Sachs and Morgan Stanley are among the underwriters for the IPO.