According to three people with direct knowledge of the situation, Zeekr, one of the Chinese manufacturers of premium electric car brands of Geely. It has filed in confidence for a U.S. initial public offering with a target valuation of more than $1 billion.
According to two people, Zeekr is aiming for more than $10 billion. It would be the first significant Chinese float in the US in more than a year and a half. This contrasts with an estimated $9 billion valuation during its first external financing last year.
The plans come as the company competes with Tesla Inc and Chinese rival Nio Inc. In addition, it is preparing to introduce the 001 crossovers, its sole model, to the European market the following year. By doing so, it adds its name to a growing list of Chinese manufacturers trying to introduce or increase EV sales in the area.
However, Geely’s more detailed EV plan is highlighted by the Zeekr expansion. Seven businesses, including three luxury names. They are now part of the automobile conglomerate founded by Li Shufu and producing electric vehicles.
The IPO application follows Beijing and Washington’s historic auditing agreement in August. The agreement significantly lessened the risk of delisting more than 200 Chinese businesses with New York stock exchange listings.
According to two individuals and the fourth source with firsthand knowledge of the situation, Zeekr filed its paperwork with American regulators. It was filed last week and intends to list in New York as early as the second quarter of 2023.
Zeekr was also intersted in listing in Hong Kong
When an IPO schedule is not set, a private file provides businesses more flexibility. Additionally, it allows them to keep information away from competitors for longer. Because the data had not yet been released to the public, the sources declined to be named.
Two of the individuals claim that Zeekr was also interested in listing in Hong Kong. But ultimately chose New York to receive a more considerable value.
Geely, the company in charge of Zeekr’s PR, declined to comment. When it announced in October that it would spin off Zeekr, it omitted to mention a listing venue or the estimated value of the sale.
Geely name through two joint ventures: Smart, with Mercedes-Benz, and Lynk & Co, with Volvo
A successful offering might result in additional Chinese share sales in the US, which is said to have the world’s largest capital pool and a more controlled listing pace.
According to Refinitiv statistics, only five Chinese businesses have conducted U.S. IPOs this year, raising a total of $162.5 million – a far cry from the $12.8 billion raised the year before.
Geely, formerly known as Zhejiang Geely Holding Group. He launched Zeekr in April 2021 to capitalize on the rising Chinese demand for high-end EVs. Later on in that year, it introduced the 001 crossovers in China.
Geely, however, faces a complication that more significant EV manufacturers BYD. Additionally, Tesla has avoided in favor of vertical integration and a production strategy that allows them to reduce costs.
Volvo, Polestar, an EV-only joint venture with Volvo, targeted the premium market. Moreover, the even more expensive luxury British sports car brand Lotus is among Geely’s high-end EV brands.
The business also sells EVs under the Geely name through two joint ventures: Smart, with Mercedes-Benz, and Lynk & Co, with Volvo, which aspires to establish a fixed-co+st, subscription-based market for EVs.
