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Chinese EV maker Zeekr hastens US IPO: unit of Geely Auto seeks to expand product line to battle Tesla, domestic rivals
- The company has made public its listing documents for an IPO on the New York Stock Exchange
- Zeekr would be the first major IPO by a Chinese firm in the US since Beijing tightened its approval procedure in 2021
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Daniel Renin Shanghai
Zeekr Intelligent Technology Holding, an electric vehicle (EV) unit of Geely Auto, is revving up for an initial public offering (IPO) in the US after it made public listing documents that it filed with regulators.
The company, which builds premium electric cars that take on Tesla’s Model 3 and Model Y in mainland China, said it would use the IPO proceeds to expand its product line as it competes for buyers in a hot market segment.
Zeekr confidentially filed for an IPO on the New York Stock Exchange (NYSE) in December 2022, targeting proceeds of US$1 billion, according to two sources with knowledge of the carmaker’s plans.
A listing now would be the first major IPO by a Chinese firm in the US since Beijing tightened its approval procedure for companies seeking to raise funds abroad in 2021.
“Fresh capital is needed by an EV start-up to strengthen its development capability and survive cutthroat competition,” said Ding Haifeng, a consultant at Shanghai financial advisory firm Integrity. “Zeekr has the potential to challenge Tesla and domestic rivals such as Nio and Xpeng after going public.”
Zeekr is unlikely to raise as much as it hoped for last year given current market sentiment. Its shares could start trading on the NYSE within weeks, Reuters reported, citing unidentified sources.
Daniel Ren is the SCMP's Shanghai bureau chief. A Shanghai native, Daniel joined the SCMP in 2007 as a Business reporter.
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