ZEEKR Intelligent Technology Holding Limited Announces Pricing of its Initial Public Offering

Rhea-AI Summary

ZEEKR Intelligent Technology Holding announced the pricing of its initial public offering of 21,000,000 American Depositary Shares (ADSs) at US$21.0 per ADS. The total gross proceeds are expected to be approximately US$441.0 million. The ADSs will begin trading on May 10, 2024, on the NYSE under the ticker symbol 'ZK'. The underwriters have an option to purchase additional ADSs. The offering is expected to close on May 14, 2024.

Market Research Analyst

ZEEKR's IPO represents a significant influx of capital that could enhance its position in the highly competitive BEV market. The pricing at $21.0 per ADS suggests investor confidence in the firm's prospects, however, as a retail investor, it's important to understand the risks inherent in any IPO. The EV market is volatile, with government policies and technological advancements greatly influencing stock performance. Given the substantial underwriters involved, the IPO appears well-supported, which could bode well for initial trading performance. Long-term success will hinge on ZEEKR's ability to innovate and capture market share in an industry facing stiff competition from established players like Tesla and emerging Chinese firms.

Automotive Industry Analyst

ZEEKR's initial offering price and ADS structure are notable for a BEV company, with the ADS representing a bundle of shares rather than a typical one-to-one ratio. ZEEKR's growth trajectory and the capital raised suggest potential for scaling production and research & development efforts. The key to their long-term valuation will be their ability to maintain a competitive edge through technological advancements, especially in battery technology and autonomy features. If they can successfully differentiate themselves and fulfill projected growth plans, this could be positive for stakeholder value. However, investors should monitor BEV market saturation and consumer adoption rates, as these will be critical determinants of ZEEKR's performance.

Financial Analyst

From a financial standpoint, the IPO's success will hinge on ZEEKR's use of proceeds. The expected gross proceeds of up to approximately $507.2 million signify a robust financial injection for expansion and R&D. However, it's imperative to scrutinize the post-IPO financials in subsequent quarters for profitability indicators and R&D outputs. In the short-term, the stock could experience volatility as the market assesses the company's fundamentals relative to its IPO price. Investors should cautiously evaluate ZEEKR's financial health post-IPO, especially considering the EV sector's capital-intensive nature. As with any IPO, there's a risk of overvaluation amidst market enthusiasm.

HANGZHOU, China, May 10, 2024 /PRNewswire/ -- ZEEKR Intelligent Technology Holding Limited ("ZEEKR" or the "Company") (NYSE: ZK), a fast-growing battery electric vehicle ("BEV") technology company, today announced the pricing of its initial public offering of 21,000,000 American Depositary Shares ("ADSs"), each representing 10 ordinary shares of the Company, at US$21.0 per ADS. The ADSs will begin trading on May 10, 2024, on the New York Stock Exchange under the ticker symbol "ZK." The offering is expected to close on May 14, 2024, subject to customary closing conditions.

The Company has granted the underwriters an option, exercisable for 30 days from the date of the final prospectus, to purchase up to an aggregate of 3,150,000 additional ADSs at the IPO price. The total gross proceeds of the offering are expected to be approximately US$441.0 million if the underwriters do not exercise their over-allotment option, and approximately US$507.2 million if the underwriters choose to exercise their over-allotment option in full.

Goldman Sachs (Asia) L.L.C., Morgan Stanley Asia Limited, Merrill Lynch (Asia Pacific) Limited, China International Capital Corporation Hong Kong Securities Limited, BNP Paribas Securities Corp., BOCI Asia Limited, CMBC Securities Company Limited, CMB International Capital Limited, HSBC Securities (USA) Inc., ICBC International Securities Limited, Santander US Capital Markets LLC, and SPDB International Capital Limited are acting as underwriters for the offering.

A registration statement related to these securities has been filed with and declared effective by the U.S. Securities and Exchange Commission (the "SEC"). This press release shall not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

This offering is being made only by means of a prospectus, forming a part of the effective registration statement. A copy of the final prospectus relating to the offering may be obtained, when available, by contacting the following underwriters: (1) Goldman Sachs (Asia) L.L.C., 200 West Street, New York, NY 10282, United States, or by telephone at +1-866-471-2526 or by emailing prospectus-ny@gs.com; (2) Morgan Stanley Asia Limited, c/o Morgan Stanley & Co. LLC, 180 Varick Street, 2nd Floor, New York, NY 10014, United States, or by telephone at +1-866-718-1649 or by emailing prospectus@morganstanley.com; (3) BofA Securities, Inc., One Bryant Park, New York, NY 10036, United States, or by telephone at +1-800-294-1322 or by emailing dg.prospectus_requests@bofa.com; (4) China International Capital Corporation Hong Kong Securities Limited, 29/F, One International Finance Centre, 1 Harbour View Street, Central, Hong Kong, or by telephone at +852-2872-2000 or by emailing g_prospectus@cicc.com.cn.

About ZEEKR Intelligent Technology Holding Limited

ZEEKR is a fast-growing BEV technology company. The Company aspires to lead the electrification, intelligentization, and innovation of the automobile industry through the development and sales of next-generation premium BEVs and technology-driven solutions. Incorporated in March 2021, ZEEKR has focused on innovative BEV architecture, hardware, software, and the application of new technologies. Its current product portfolio primarily includes ZEEKR 001, a five-seater, cross-over hatchback; ZEEKR 001 FR, its latest cross-over hatchback; ZEEKR 009, a luxury six-seater MPV; ZEEKR X, a compact SUV; and an upscale sedan model.

With a mission to create the ultimate mobility experience through technology and solutions, ZEEKR's efforts are backed by strong in-house R&D capabilities, a deep understanding of products, high operational flexibility, and a flat, efficient organizational structure. Together, these features enable fast product development, launch, and iteration, as well as the creation of a series of customer-oriented products and go-to-market strategies.

For more information, please visit https://ir.zeekrlife.com/.

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "target," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to", or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law.

Investor Relations Contact

In China:

ZEEKR Intelligent Technology Holding Limited
Investor Relations
E-mail: ir@zeekrlife.com 

Piacente Financial Communications
Tel: +86-10-6508-0677
E-mail: zeekr@thepiacentegroup.com  

In the United States:

Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
E-mail: zeekr@thepiacentegroup.com 

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SOURCE ZEEKR Intelligent Technology Holding Limited

FAQ

How many American Depositary Shares (ADSs) were offered by ZEEKR Intelligent Technology Holding ?

ZEEKR Intelligent Technology Holding offered 21,000,000 American Depositary Shares (ADSs) in its initial public offering.

What is the pricing of the ADSs offered by ZEEKR Intelligent Technology Holding ?

The pricing of the ADSs offered by ZEEKR Intelligent Technology Holding is US$21.0 per ADS.

When will the ADSs of ZEEKR Intelligent Technology Holding start trading?

The ADSs of ZEEKR Intelligent Technology Holding will start trading on May 10, 2024, on the New York Stock Exchange under the ticker symbol 'ZK.'

What are the total gross proceeds expected from the offering by ZEEKR Intelligent Technology Holding ?

The total gross proceeds expected from the offering by ZEEKR Intelligent Technology Holding are approximately US$441.0 million.

Who are the underwriters for the offering of ZEEKR Intelligent Technology Holding ?

Goldman Sachs (Asia) L.L.C., Morgan Stanley Asia , Merrill Lynch (Asia Pacific) , and other financial institutions are acting as underwriters for the offering by ZEEKR Intelligent Technology Holding