Electric-car marque Zeekr, controlled by China’s largest private auto group Zhejiang Geely, has hit a roadblock. It is putting on hold its New York initial public offering because of a mismatch in valuation expectations, Reuters reported on Thursday. It was hoped the listing would break the ice and encourage a resurgence in Chinese volumes in U.S. capital markets. The deal was expected to raise less than $500 million: that would potentially nearly double the total Chinese issuance stateside so far this year, per Dealogic.
Zeekr’s timing wasn’t bad. Its prospectus was published in November, when global stocks recorded their best performance since 2020. It was the same month President Xi Jinping and his American counterpart Joe Biden met and put a floor under the Sino-American relationship. Globally, investors remain keen on the sector too. Tesla’s (TSLA.O) shares are up 95% this year and those of Tata Technologies (TATE.NS), an EV servicing firm, nearly tripled on their debut in Mumbai this week.
Yet Zeekr may have struggled to match the $13 billion valuation it achieved in a February funding round because its growth hinges on expansion into Europe and the United States, where policymakers are increasingly wary of Chinese carmakers gaining traction. Other China-linked names expanding rapidly around the world and planning public debuts like fast-fashion giant Shein will take note. (By Katrina Hamlin)
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