Geely-owned Zeekr has officially moved to land on the New York Stock Exchange after months of discussions, making it the latest Chinese automaker to try and go public in the U.S.
The premium EV brand said it is looking to raise up to $367.5 million by selling 17.5 million American depository shares (ADS) for between $18 to $21 each, according to a regulatory filing. Each ADS is the equivalent to 10 ordinary shares.
Zeekr is targeting a $5.13 billion valuation; in February 2023, the EV maker raised $750 million at a $13 billion valuation. Despite a lower valuation, it will be the biggest U.S. offering from a Chinese firm since 2021.
According to Zeekr, three companies have expressed interest in subscribing for up to $349 million of the ADS offered. That includes Geely Auto, which owns Zeekr, EV battery maker CATL, and Israeli self-driving technology company Mobileye.
But Zeekr’s initial public offering (IPO) might struggle to raise cash. Chinese firms have had trouble fundraising in recent years, even after U.S. regulators in 2022 finally gained access to audit documents for companies in China and Hong Kong. Reuters in March reported that first-quarter fundraising plunged 82% year-over-year to $2.4 billion — the lowest since 2018.
A public listing by Zeekr would have it join several other public companies owned by Geely, including Swedish carmakers Volvo and Polestar. Lotus Technology launched on the Nasdaq $NDAQ in February through a $7 billion blank-check deal; the company is jointly owned by Geely and Malaysia’s Etika Automotive.
Geely Chairman Shufu Li will control just shy of 75% of all shares after the IPO, or 1.82 billion shares. Zeekr CEO An Conghui will own almost 3% of all shares after the IPO.
Zeekr would also join at least three competitors — Xpeng, Li Auto, and Nio — in becoming a publicly listed company in the U.S. All three EV makers are rivals to Tesla $TSLA in China, with Zeekr telling CNBC in April that it has “already outsold Tesla in some areas” of China.
Zeekr’s lineup of premium EVs includes the 007 sedan, the 001 five-seat crossover, and the X $TWTR compact SUV. The company is looking to grow its presence in Europe, where it currently only sells EVs in Sweden and the Netherlands, and Asia. An told CNBC last month that Zeekr is “actively deploying” in Latin America, without elaborating.