Chinese premium electric automaker Zeekr announced Friday that it aims to raise up to $5.13 billion valuation in its initial public offering (IPO) in the United States, Reuters reported.
Zeekr talks about IPO plans in the US
The Geely-owned brand is gearing up for an initial public offering (IPO) on the New York Stock Exchange (NYSE) this week.
It seeks a whopping $5.13 billion valuation, marking the first major “floatation” of a Chinese company in over two years.
Zeekr aims to sell 17.5 million American depositary shares (ADSs) worth $18-$21 each to raise up to $367.5 million, according to the filing with the SEC last Friday.
The impending IPO will test investors’ fondness for China-based companies amid the intensifying tensions between the US and China.
US-China tension discourages Chinese companies from IPO in the US
Dealogic data revealed that Chinese companies’ six US IPOs only raised $46.9 million in Q1 2024. It indicates a substantial decline from the $428 million record in the same period last year.
The intensifying regulatory dispute between the two large economies and repression from Beijing on some of its high-flying startups continue to discourage Chinese companies from pursuing US listings.
Beijing reportedly imposed new rules to restore such listings last year after the Public Company Accounting Oversight Board (PCAOB) and China settled the audit dispute in December 2022.
Zeekr’s progress
Geely just launched Zeekr three years ago to sell premium zero-emission vehicles and challenge the likes of Tesla and NIO.
Despite that relatively short period, the brand has already introduced multiple models. Its current lineup includes the flagship 001 shooting brake and its 009 multi-purpose vehicle (MPV).
It plans to launch the new bespoke sedan OO7 and electric van MIX.
Zeekr’s valuation reached $13 billion after it raised $750 million in a Series A funding round last February 2023.
Considering the ongoing trade tensions between the US and China, it would be interesting to see how Zeekr would fare in its upcoming IPO in the United States.
