Jikrypton Will Go Public In The United States This Week And Is Expected To Become The Fastest New Energy Vehicle Company To Ipo In History

On May 3, Eastern Time, Jikrypton submitted an updated quasi-prospectus (red herring prospectus) to the U.S. Securities and Exchange Commission (SEC), planning to list on the New York Stock Exchange under the stock code "ZK".

Image source: Jikrypton official website

The prospectus shows that Jikrypton will issue 17.5 million ADS (American depositary shares), each ADS is equivalent to 10 ordinary shares, and the issuance price range is US$18-21/ADS, raising up to US$367.5 million (approximately 2.639 billion US dollars) (yuan) of funds, Ji Krypton's target valuation is US$5.13 billion (approximately 37 billion yuan), which is lower than previous expectations, but it will still become the largest Chinese company to IPO in the United States since October 2021.

Among them, Jikrypton's original shareholder Geely Automobile, as well as investors and shareholders such as CATL and Mobileye have expressed interest in subscribing for up to US$349 million in American depositary shares. Among them, Geely Automobile intends to subscribe for up to US$320 million of depositary shares on offer.

It is reported that Ji Krypton will be officially listed on the New York Stock Exchange as early as May 10. After landing on the US stock market as scheduled, it will become the fastest IPO new energy vehicle company in history.

Geely Automobile Chairman Li Shufu will own nearly 75% of Jikrypton after its IPO, while Jikrypton CEO An Conghui will hold nearly 3% of the shares.

Jikrypton was established in March 2021. It is a high-end smart pure electric brand under Geely Holding Group. There are currently four models on sale: Jikrypton 001, Jikrypton 009, Jikrypton 007, and Jikrypton X. In addition, Jikrypton also released Jikrypton MIX during the Beijing Auto Show, which will become a strong competitor in the mid-to-high-end MPV market.

Data shows that in April this year, Jikrypton just achieved a record monthly sales high, delivering 16,089 units that month, a year-on-year increase of 99% and a month-on-month increase of 24%. As of the end of April 2024, Jikrypton has delivered a total of more than 240,000 vehicles. Among them, a total of 49,148 vehicles were delivered in the first four months of 2024, a year-on-year increase of 111%. In 2023, Jikrypton's revenue will be 51.7 billion yuan, of which automobile sales revenue will be 33.912 billion yuan, and the gross profit margin of the vehicle will reach 15%.

But Jikrypton, which was founded three years ago, is still in the red. The prospectus shows that in 2021, 2022 and 2023, Jikrypton's net losses will be 4.5143 billion yuan, 7.6551 billion yuan and 8.2642 billion yuan respectively. As of December 31, 2023, Jikrypton's cumulative losses reached 20.9 billion yuan. At the same time, Jikrypton has cash and cash equivalents of RMB 3.3 billion and net current liabilities of RMB 11.8 billion.

According to the prospectus, Ji Krypton plans to use the funds raised in three areas: approximately 45% (or US$138.9 million) of which will be used to develop more advanced pure electric vehicle technology and expand product portfolio; approximately 45% (or US$138.9 million) USD) for sales and marketing and expansion of the enterprise's service and charging network; approximately 10%, or USD 30.8 million, for general corporate purposes, including working capital needs, etc.

After the listing, Ji Krypton will also become the fourth Chinese new energy vehicle company to be listed on the US stock market after Wei Xiaoli.

The previous post-investment valuation of JiKrypton once reached US$13 billion (approximately RMB 94.8 billion). The current valuation has shrunk by more than half from the highest point three years ago. This should also be the current attitude of the capital market towards electric vehicle investment. Compared with the high valuations in 2021, the market is now obviously more cautious.

In the past year, the stock prices of new car-making forces including NIO and Xpeng in the U.S. stock market have fallen by an average of about 70% from their peak in 2021.

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