(Yicai) May 6 -- Zeekr Intelligent Technology, the electric vehicle subsidiary of Chinese auto giant Geely Holding Group, said it seeks to raise as much as USD368 million in an initial public offering of shares in New York for a valuation of up to USD5.13 billion.

Zeekr will issue 17.5 million American depository shares priced at between USD18 and USD21 apiece, with each equivalent to 10 ordinary shares, according to its May 4 filing. Goldman Sachs, Morgan Stanley, Merrill Lynch, and China International Capital are the underwriters.

Geely and its unit Geely Automotive Holdings set up Zeekr in September 2020 and spun it off the following year. Zeekr completed a CNY500 million (USD69.1 million) pre-A financing round in 2021 and a CNY750 million A round last year, securing funds from Contemporary Amperex Technology, Yuexiu Fund, Tongshang Fund Management, and Quzhou Xinan Zhizao Equity Investment Partnership. Those fundraisers valued it at USD13 billion.

Geely Auto will subscribe to up to USD320 million of the ADRs. CATL and Intel-backed self-driving technology firm Mobileye Global, two other Zeekr shareholders, have also expressed interest in subscribing to the IPO.

Zeekr plans to use USD308.6 million of the listing’s proceeds to develop advanced EV technologies and expand its charging network, as well as for sales and marketing purposes, the Ningbo-based company said.

Zeekr would be the fourth Chinese new energy vehicle startup to go public in the United States after Nio, Xpeng Motors, and Li Auto.

But market conditions and opportunities are not the best right now, according to industry analysts, who note that the decision to go public hinges on whether a carmaker is seeking short-term financing or long-term development. A US stock market listing can also help those Chinese automakers intent on going global build a globalized corporate governance structure, they added.

Zeekr lost CNY4.5 billion (USD621.8 million) in 2021, CNY7.7 billion in 2022, and CNY8.2 billion last year, with operating revenues of CNY6.5 billion, CNY31.9 billion (USD4.4 billion), and CNY51.7 billion, respectively. The firm had delivered more than 240,000 vehicles as of April 30.

It posted a gross margin of 15 percent last year, compared with Li Auto’s 22.2 percent, Nio’s 10 percent, and Xpeng’s minus 2 percent. Tesla’s gross margin was 19 percent.

Zeekr’s income mainly comes from the sale of vehicles, motors, batteries, electronic control systems, and services such as research and development.

Editor: Futura Costaglione