Stock Market

Geely’s Zeekr Nears U.S. IPO: Filing Set to Go Public This Week, Sources Say

Zeekr, the premium electric car brand of Chinese automaker Geely, is gearing up to disclose its filing for a New York stock listing this week, as reported by two anonymous sources familiar with the matter. Despite strained U.S.-China relations, Zeekr aims to capitalize on the growing enthusiasm for electric vehicles (EVs). The disclosure will include the publication of its prospectus, with shares potentially hitting the public market within weeks, according to the sources who requested anonymity due to the confidential nature of the information.

Goldman Sachs and Morgan Stanley lead the underwriting team, but details regarding the size and price of the float will be determined later, as mentioned by one of the sources. Both Zeekr and Morgan Stanley declined to comment, while there was no response from Goldman Sachs.

Zeekr had confidentially filed for a U.S. IPO in December with the goal of raising over $1 billion. However, one source suggests that the actual amount raised may fall short of the target. The confidential filing strategy allows companies to keep information from competitors for a longer duration, providing flexibility, especially when the IPO timeline is uncertain.

If successful, this IPO could mark a significant milestone as the first major listing by a Chinese company in the U.S. in two years, following increased regulatory scrutiny in 2021. Zeekr, benefiting from Zhejiang Geely Holding Group’s manufacturing capabilities, previously raised $750 million in a funding round in February, valuing the brand at $13 billion. Despite a price war initiated by Tesla impacting other EV makers, Zeekr’s profitability has improved, achieving a double-digit gross profit in the first half of the current year, compared to a 5% gross profit in 2022.

Established in 2021, Zeekr has climbed to the 13th position in EV sales in China, selling 79,028 units in the first nine months of this year, more than double the figures from the same period in 2022. The brand plans to expand into overseas markets, including the Netherlands, Sweden, Germany, Israel, Kazakhstan, and others.

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