Zeekr, the premium electric vehicle (EV) brand of Chinese automaker Geely (0175.HK), has revived its plans to launch an initial public offering (IPO) in New York, aiming to raise up to $500 million, according to sources familiar with the matter. The company had initially halted its listing intentions in November due to a disparity in valuation expectations between investors and the company, compounded by uncertain global financial market conditions. However, Zeekr is now conducting a non-deal roadshow with potential investors in preparation for the IPO.
Although Zeekr had previously targeted raising over $1 billion, it now seeks to secure $500 million in funding through its IPO. The company filed its prospectus with U.S. regulators in November, signaling its commitment to the listing process despite the challenges it faced last year. The IPO comes amidst a subdued market for Chinese companies in the U.S., with only six IPOs raising a total of $46.9 million in the first quarter of 2024, the quietest start to a year since 2017.
Zeekr, established in 2021 by Geely to cater to the growing demand for premium EVs in China, garnered significant investment interest last year. In February, it secured $750 million in investments from prominent entities including CATL, a leading Chinese battery manufacturer, and Amnon Shashua, CEO of Mobileye Global. This funding round valued Zeekr at $13 billion, indicating strong investor confidence in the brand's potential.
Looking ahead, Zeekr aims to expand its presence both domestically in China and internationally, with plans to enter markets such as Australia later this year. The company is targeting to double its vehicle deliveries in 2024, aiming to deliver 230,000 cars compared to its 2023 figures.
In addition to its IPO plans, Zeekr has been actively enhancing its product lineup to meet evolving consumer demands. The company recently unveiled an updated version of its 001 model, featuring an 800-volt architecture and rapid charging capabilities. Furthermore, Zeekr introduced an all-new electric minivan named the Mix, positioned to compete with vehicles like the VW ID.Buzz.
The new 001 model boasts impressive performance figures, with rear-wheel drive versions equipped with a 416 hp electric motor, while all-wheel drive variants feature an additional 362 hp motor at the front axle. These enhancements enable the flagship model to accelerate from 0 to 62 mph (100 km/h) in just 3.3 seconds, showcasing Zeekr's commitment to delivering high-performance electric vehicles.
Overall, Zeekr's decision to resume its IPO plans reflects its confidence in the future of the electric vehicle market and its determination to capitalize on growing investor interest in sustainable transportation solutions.
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