Zeekr, the premium electric-vehicle brand formed by Chinese automaker Geely, is reportedly set to gauge investor interest for a potential $1 billion initial public offering (IPO) in the United States. The company is aiming for a valuation exceeding $13 billion, mirroring the valuation achieved during a previous private funding round of $750 million in February.
Over the course of two weeks, Zeekr plans to engage with potential investors across various global financial hubs, including Middle East, New York California, Boston, Singapore, Hong Kong and London. The ultimate size of the IPO will be contingent on market conditions later in the year.
Should the IPO come to fruition, it would mark the largest U.S. listing by a Chinese firm in over two years, surpassing the $4.4 billion raised by ride-hailing giant Didi in mid-2021. However, the valuations of new Chinese share offerings in the U.S. have faced challenges due to heightened regulatory scrutiny from Chinese authorities concerning domestic companies seeking overseas listings.
Geely created the Zeekr brand in April 2021 as a strategic move to capitalize on the growing demand for upscale electric vehicles (EVs) in China.
Zeekr currently offers a portfolio of three models, with initial prices ranging from 189,800 yuan ($26,042) to 499,000 yuan. Notably, the company recently unveiled its inaugural luxury sports car earlier this month.
Having achieved a delivery milestone of 72,000 vehicles in the previous year, the automaker has set an ambitious target of delivering 140,000 vehicles within the current year. Zeekr has also articulated its intention to expand its market presence into countries like Kazakhstan, Israel, Sweden and the Netherlands.
Zeekr’s automotive division achieved a double-digit gross profit margin in the first half of 2023, surpassing its overall figure for the entire year of 2022 by more than twofold.