Chinese EV maker Zeekr surges 34% in Wall Street debut
Chinese electric vehicle brand Zeekr Friday made an impressive debut on the New York Stock Exchange, with its shares opening nearly 24 percent higher than the IPO price of US$21 per share.
Zeekr's stock closed at 28.26 dollars, a 34.57 percent jump from its IPO (initial public offering) price, showcasing a strong start for the EV maker.
Throughout the day, Zeekr's price continued to climb, reaching a high of US$29.32 per share. There were likely fluctuations throughout the day, but the overall trend was positive.
This listing represents the first major market entry in the United States by a China-based company since 2021. Zeekr's successful flotation reflects its ambition to distinguish itself in a competitive landscape of Chinese EV makers vying for increased market share in Europe.
On average, IPOs of roughly this size have risen 29 percent on their debut this year, according to Dealogic data.
"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," said Zeekr's chief executive officer Conghui An, who is also the president of Zeekr's parent company, Geely Holding Group.
Zeekr has achieved remarkable milestones despite being a relatively young startup. Zeekr revealed in April that it is outselling Tesla's Model Y and Model 3 in certain regions of China. The company delivered 49,148 vehicles in the first four months of 2024, marking an impressive 111 percent year-over-year growth.
Additionally, Zeekr benefits from its association with Geely, its parent company. Geely, a major player in the Chinese automotive industry, established Zeekr as its EV subsidiary in March 2021. Geely is actively pursuing growth in the EV sector, aiming to compete with companies like BYD.
Geely has more than 50 percent of the company's voting power after the IPO is now complete, according to a filing to the US Securities and Exchange Commission on May 3.
