Zeekr, Geely’s upmarket electric car brand, has confidentially filed for a US initial public offering, aiming to raise over $1 billion, three sources familiar with the matter told Reuters.
Zeekr is looking for an over $10 billion valuation, two of the sources said, which compares to a $9 billion valuation in its maiden external fundraising in 2021, according to Inquirer.net.
The plans come as the brand, competing with Tesla and NIO, sets its sights on marketing its 001 crossovers in Europe by 2023. In doing so, it joins an increasing list of Chinese carmakers looking to launch or expand sales of electric vehicles in the region.
Zeekr to go public in NYC in 2023
Last week, Zeekr submitted its filings with US regulators and is planning to go public in New York by the second quarter of 2023 at the earliest, said two of the sources and a fourth source who was also familiar with the matter.
The sources declined to be identified because the information was not yet public.
According to the sources, Zeekr considered Hong Kong as its listing venue. However, it selected New York hoping to reach a higher valuation.
Geely, which holds public relations for Zeekr, had declined to comment. In October, it said it would spin Zeekr off. However, it didn’t identify a listing venue or the possible value of an offering.
Zeekr oo1 crossover launch in China
Established by Geely in April last year to tap into growing Chinese demand for premium electric vehicles, Zeekr launched the 001 crossovers in China in late 2021.
Zeekr IPO to be the US’ first major float of a Chinese firm
Notably, a successful IPO would be the first major US float of a Chinese firm ever since Beijing tightened its grip on Chinese companies’ overseas share sales in July 2021– a shift caused by a cybersecurity probe into Didi Global on the heels of its US stock market premiere.
Moreover, a Zeekr listing could pave the way for more Chinese share sales in the US, which is considered the world’s deepest pool of capital and has a more predictable listing pace.
It is worth noting that only five Chinese companies have completed US IPOs in 2022, which raised a combined $162.5 million, with the largest $52.25 million offering from hotel group Atour Lifestyle Holdings last month.
$500 million raised in Zeekr’s first external funding
In August 2021, Zeekr raised $500 million in its first external funding from investors, including battery maker CATL, Intel Capital, and online video firm Bilibili Inc.
Zeekr’s car sales from January to September 2022
It sold more than 60,600 cars in the first nine months of this year, which compares with approximately 285,900 Tesla Model Y crossovers in China in the same period, as per China Passenger Car Association.
The 001 model starts at RMB 299,000 ($42, 947) in China, slightly more than the RMB 288,000 ($41, 367) for Tesla’s Model Y.
On the other hand, Zeekr hasn’t announced pricing for overseas markets.
