China’s Zeekr to raise $500m in US IPO

Zeekr, the premium electric vehicle (EV) brand of Chinese automaker Geely, has resumed plans to raise up to $500 million in a New York initial public offering (IPO), Reuters reported on Wednesday, citing sources familiar with the matter.

The company had previously put its listing on hold in November due to valuation discrepancies with investors and market volatility.

Zeekr is currently conducting a non-deal roadshow with potential investors in preparation for the IPO. The company has filed its prospectus with US regulators and is proceeding with the necessary preparations.

In the first quarter of 2024, six Chinese companies raised $46.9 million in the US through IPOs, a significant decrease from the same period last year.

Zeekr’s potential IPO size of up to $500 million is lower than its initial target of over $1 billion.

Zeekr aims to deliver 230,000 cars in 2024, double the number of deliveries in 2023. The company was established in 2021 by Geely to cater to the increasing demand for premium EVs in China.

It secured $750 million in funding last year from investors like Amnon Shashua, CEO of Mobileye Global, and Chinese battery giant CATL, valuing the brand at $13 billion.