Chinese premium electric automaker Zeekr’s shares surged nearly 35% above its initial public offering price in the US on May 10, Reuters reported.
Nearly 35% jump for Zeekr in first US trading day
The Geely-owned EV brand made a very remarkable debut on the New York Stock Exchange on Friday.
Zeekr’s shares opened almost 24% higher than the $21 per share IPO price. It closed at $28.26, representing a 34.57% increase from the IPO price. This stellar result implies a solid start for the Chinese electric automaker.
The price continued to increase throughout the first trading day, reportedly hitting a high of $29.32 per share. Although there were also fluctuations, the overall results were positive.
It is also worth noting that Zeekr’s listing marks the first major market entry of a Chinese company in the US since 2021.
Zeekr’s expansion push
Zeekr’s stellar US debut demonstrates its strong commitment to setting itself apart from its co-Chinese electric automakers currently focusing on the European market.
“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.”
Zeekr CEO Conghui An
Dealogic data asserted that IPOs of about this size have surged 29% on average on their debut in 2024.
The US debut gave Zeekr a $6.8 billion fully diluted valuation or approximately 50% of the $13 billion it raised in a funding round in 2023.
EV foray
Geely formally launched Zeekr only three years ago to manage the sale of premium zero-emission vehicles and challenge the likes of Tesla and NIO.
While relatively new in the market, the Chinese electric vehicle brand has already rolled out multiple models. So far, its portfolio includes the flagship 001 electric shooting brake and its 009 multi-purpose vehicle (MPV).
It aims to launch the all-new bespoke sedan OO7 and electric van MIX in the near future.
Impressively, its valuation totaled $13 billion after it successfully raised $750 million in a Series A funding round in February 2023.
Considering the intensifying trade tensions between China and the US, it would be interesting to see how Zeekr would fare in the latter’s market. Nonetheless, its stellar performance on its first trading day showcases a very solid start.
Zeekr aims to raise $368 million in its US debut at a $5.13 billion valuation. Geely now has over 50% of Zeekr’s voting power following the IPO’s completion, according to a filing to the US Securities and Exchange Commission on May 3.
