New York-listed shares of $ZEEKR (ZK.US)$ closed nearly 35% higher than its initial public offering price on its first day of trading on Friday.
What Happened: ZEEKR, the global electric mobility technology brand of Chinese automaker Geely Automobile Holding (OTC:GELYY), had priced its U.S. initial public offering (IPO) of 21 million American Depositary Shares (ADS) at $21 per share.
The shares of Tesla Inc's Chinese rival closed at $28.26 on Friday after opening at $26, giving the company a fully diluted valuation of $6.8 billion.
"There are huge demands and opportunities in the global new energy vehicle market. Zeekr is positioned as a premium electric mobility brand and is an important pillar supporting Geely's electric transformation. I believe that Zeekr will be able to seize this historic opportunity and become a sustainable business that unlocks long-term value for users, investors and society," Geely Holding Chief Executive Daniel Li said. Geely also owns Volvo Cars and Lotus Cars.
Why It Matters: Zeekr started delivering its vehicles in October 2021, and the brand has delivered over 240,000 vehicles to date. The company has announced plans to sell vehicles in European, Middle Eastern, and other Asian markets.
Zeekr disclosed a surge in total revenue to 51.67 billion yuan ($7.15 billion) in 2023, but its net loss widened to 8.26 billion yuan.
Zeekr's debut on the New York Stock Exchange comes as other U.S. EV makers have been facing a stock slump. Tesla stock has slumped 32.2% year-to-date while Rivian stock has slumped nearly 52.7%.