Chinese electric car maker Zeekr, a subsidiary of Geely Holding which also owns Volvo, is reportedly considering an initial public offering (IPO) to raise approximately $500 million. Zeekr, known for its fast-growing brand exclusively focused on electric vehicles, is seeking funds to compete in the highly competitive Chinese market. The IPO plans were initially discussed in November last year but were put on hold due to differences in capitalization estimates with investors. However, Zeekr is now expected to resume preparations for the IPO and has engaged in a roadshow with potential investors, though no commitments have been made.
Zeekr has confirmed that it has filed with the U.S. Securities and Exchange Commission and is making other necessary preparations for the public offering. While the exact terms of the IPO have not been disclosed, the company aims to raise around $500 million. It’s worth noting that the first quarter of this year saw a significant decline in public offerings by Chinese companies on the U.S. stock market, with activity decreasing nearly tenfold to $46.9 million compared to the same period last year. The IPO market for Chinese companies has been relatively quiet since the beginning of 2017.
Zeekr has ambitious plans to deliver 230,000 electric vehicles to the market this year, which is twice the number it delivered in the previous year. While the current IPO plans appear more modest than the previously expected $1 billion, Zeekr had recently raised $750 million through a private placement of capital in February. At that time, the company’s valuation stood at $13 billion.
Overall, the IPO will provide Zeekr with additional capital to support its expansion and competition in the Chinese electric vehicle market, as it aims to establish itself as a prominent player in the industry.
