The price rose by more than 30% on the first day of listing! Ji Krypton’s “Lightning IPO”, market value is catching up with Xpeng

At 1:06 this morning, the mobile phone next to me suddenly started vibrating violently. When I opened it, I saw all the news from the Ji Krypton Media Group:

Group announcement:

A new milestone! JiKrypton successfully landed on the New York Stock Exchange.

This is the ninth IPO for Geely Group Chairman Li Shufu.

On the evening of May 10, JiKrypton was successfully listed on the New York Stock Exchange with the stock code "ZK". Jikrypton sold 21 million American depositary shares (ADS) at an issue price of US$21, raising approximately US$441 million.

On the first day of the IPO, JiKrypton ADS opened at US$26 per share and closed at US$28.26, an increase of 34.57%, with a market value of US$6.898 billion.

Comparing "Wei Xiaoli", Jikrypton's current market value is very close to that of Xpeng (USD 7.303 billion), but there is still a big gap with Weilai (USD 10.58 billion) and Ideal (USD 28.32 billion).

However, it should be pointed out that Jikrypton’s market value once reached US$7 billion, approximately RMB 51 billion, making it the largest Chinese company to have an IPO in the United States since 2021.

An Conghui, President of Geely Holding Group and CEO of Jikrypton Intelligent Technology, said:

In 37 months, Ji Krypton set a new record for the fastest time from launch to IPO for a new energy vehicle brand. Behind this lies the 37 years of accumulation of our parent company, Geely Holding Group, and its pioneering exploration of the third track in the new energy vehicle industry.

Jikrypton, founded in 2021, has been actively working for an IPO in the United States since 2022. In contrast, "Wei Xiaoli" took 4, 6 and 5 years from its establishment to its successful IPO respectively.

In fact, this is the second time that JK Motors has hit the New York Stock Exchange.

The "rich second generation" among the new forces failed to go smoothly

Ji Krypton is a "new force" with its own halo. On the eve of the establishment of the brand, An Conghui once said this:

It is indeed difficult to turn around the elephant, and the historical baggage is also very heavy. Our transformation has both disadvantages and advantages. We can make use of Geely Automobile's resources and experience in traditional manufacturing, so we can step out of the third track.

Now it seems that An Conghui's words are true.

With the resource support and technical support of Geely Group, Ji Krypton Automobile Company has developed rapidly, and has delivered more than 240,000 new cars in three years since its establishment. The product matrix covers four types of compact cars, sedans, hunting vehicles and MPVs.

What’s even more rare is that from Jikrypton 001 to Jikrypton 009, every Jikrypton car is aimed at the high-end pure electric market.

In terms of revenue, the prospectus shows that in 2023, Jikrypton’s revenue will be 51.673 billion yuan, automobile sales revenue will reach 33.912 billion yuan, and the gross profit margin of automobile-related business will reach 16.3%.

Geely's all-out efforts and rising sales have made JiKr become famous in the investment market. Less than half a year after its establishment, JiKr Auto completed a $500 million Pre-A round of strategic financing, with investors including Intel Capital , CATL, Bilibili and other industry giants have a luxurious lineup.

Then, JiKrypton completed a US$750 million Series A financing in February last year. This round of financing was participated by Mobileye founder and CEO Amnon Shashua, CATL, etc. The post-investment valuation reached US$13 billion, surpassing Many "seniors".

However, the two rounds of financing of US$1.25 billion are obviously not enough for the Chinese auto market, which is trapped in a protracted price war, to maintain rapid growth of Jikrypton. "Lightning IPO" has naturally become Jikrypton's only option.

In October 2022, Geely disclosed Jikrypton’s spin-off and listing plan for the first time. In December of the same year, Geely Automobile issued an announcement on the Hong Kong Stock Exchange stating that Jikrypton Automobile submitted a confidential filing to the U.S. SEC on December 7, New York time, on a confidential basis. Draft Registration Statement for Possible Initial Public Offering.

In November 2023, Jikrypton submitted its IPO application documents to the SEC for the first time and planned to be listed on the New York Stock Exchange. However, Jikrypton did not release subsequent data such as the issuance range and issuance size. It temporarily shelved the IPO plan and continued to observe market conditions before making a decision.

But now, Ji Krypton can't wait any longer – even if its revenue and gross profit continue to improve, Ji Krypton is still in a state of continuous losses.

The prospectus shows that from 2021 to 2023, Jikrypton’s net losses were 4.514 billion yuan, 7.655 billion yuan, and 8.264 billion yuan respectively, and the cumulative losses in three years exceeded 20 billion yuan.

At the same time, Ji Krypton’s cash flow cannot support high research and development expenses.

At the end of 2023, Jikrypton's cash and cash equivalents totaled 3.26 billion yuan, and Jikrypton's research and development expenses from 2021 to 2023 reached 3.160 billion yuan, 5.446 billion yuan, and 8.369 billion yuan respectively.

The money in Ji Krypton’s wallet can’t last more than half a year. This means that even if the current window period is not the best for the capital market, Ji Krypton will still have to bite the bullet.

Because of this, the US$441 million raised by Jikrypton this time is far lower than the previous goal of more than US$1 billion, and the market value of 6.898 billion is almost halved compared to the valuation during the Series A financing.

IPO is just the beginning

Recently, many leaders of major companies want to earn traffic by creating personal IPs. To put it bluntly, they want to become Internet celebrities. But being an Internet celebrity is not an easy thing to do. If you are not careful, you will be swallowed up by the whirlpool of public opinion.

The same goes for IPOs.

For car companies, going public does not mean going ashore. IPO can only be regarded as a new starting point. The huge competition and the unknown industry structure make the market's evaluation of new energy car companies become more conservative.

As a listed company, every time the financial report is released, the company will receive great attention from public opinion. If a company performs well in the market and has reasonable planning, it will be recognized by the market, but once profits decline, it will suffer backlash from the capital market.

"Wei Xiaoli" is a good example. Compared with the high point in 2021, the U.S. stock prices of Weilai and Xpeng, which have lagged behind in both sales and gross profit, have fallen by more than 80%; Li Auto, whose revenue exceeded 100 billion yuan, has achieved multiple stock price surges in four years.

In An Conghui's view, if Jikrypton wants to "become" an ideal, the breakthrough lies in globalization.

For Jikrypton, this listing in the United States will not only enhance its global governance capabilities, but also open a new window for global investors to observe and participate in the global development of China's new energy vehicles.

Jikrypton will take the listing as an opportunity to create the most extreme experience of travel life with global users, bringing stable long-term value to investors.

An Conghui revealed that after Jikrypton is listed on the U.S. stock market, the models customized by Jikrypton and Waymo will enter the U.S. travel market, and its home product Jikrypton MIX will also be launched in China and other markets.

In 2024, Ji Krypton will not only enter the luxury markets of 8 European countries, but also enter the markets of 50 countries and regions including Southeast Asia, the Middle East, South America, and Australia, accelerating its globalization strategy in an all-round way. As of April 30 this year, Ji Krypton has built nearly 380 stores around the world.

"Jikrypton itself is a global brand, and our goal has always been to face the global market. The characteristics of the automobile industry also determine that we must take the path of globalization and internationalization." An Conghui said.

Anyone with wheels is interested and welcome to communicate. Email: [email protected]

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Ai Faner | Original link · View comments · Sina Weibo