Geely’s Zeekr nears US IPO, filing to be made public this week – sources.
Zeekr to Unveil Plans for New York Stock Listing
3:00 PM UTC – November 9, 2023
SHANGHAI (Reuters) – Zeekr, the premium electric car brand of Chinese automaker Geely (GEELY.UL), is set to make a splash this week by revealing some details of its upcoming listing on the New York Stock Exchange. This move comes as the company aims to capitalize on the growing enthusiasm for electric vehicles, despite the strained relations between the United States and China.
The eagerly awaited prospectus of Zeekr will be made public, and its shares could start trading on the stock exchange within a few weeks of the announcement, according to insiders familiar with the matter.
Both sources, who wished to remain anonymous due to the confidential nature of the information, confirmed the involvement of leading underwriters Goldman Sachs and Morgan Stanley. However, the size and price of the initial public offering (IPO) will be determined at a later stage.
When approached for comment, Zeekr, Morgan Stanley, and Goldman Sachs declined to provide any further details.
Zeekr had previously filed for a U.S. IPO in December last year, with the aim of raising over $1 billion, as reported by Reuters. However, one of the sources revealed that the company is likely to secure a lower amount than originally targeted.
A confidential filing allows companies to maintain a competitive edge by withholding information from rivals for a longer period, especially when the timeline for an IPO is not yet fixed.
If successful, Zeekr’s IPO could mark a significant milestone as the first major listing by a Chinese company in the United States in two years. This follows Beijing’s tightening of regulations on overseas share sales in 2021, triggered by a cybersecurity investigation into ride-hailing giant Didi Global shortly after its U.S. stock market debut.
In February, Zeekr raised $750 million in a funding round, valuing the brand at $13 billion. Investors included Amnon Shashua, CEO of autonomous driving technology company Mobileye Global (MBLY.O), which is majority-owned by Intel Corp (INTC.O), and Chinese battery giant CATL (300750.SZ).
The profitability of pure electric vehicle manufacturers has been impacted by a price war initiated by Tesla in China earlier this year. In response, these companies have been actively cutting costs and forming partnerships to survive the increasingly competitive market.
However, Zeekr has managed to improve its profitability by leveraging the manufacturing facilities and cost-saving capabilities of its parent company, Zhejiang Geely Holding Group.
CEO Andy An revealed in August that Zeekr achieved a double-digit gross profit in the first half of this year, compared to a 5% gross profit in 2022.
Established in 2021, Zeekr ranked 13th in electric vehicle sales in China, with over 79,000 units sold in the first nine months of this year, more than double the figure from the same period in 2022. The brand offers four electric vehicle models in China, with its 001 crossover being the best-selling model priced from 269,000 yuan ($36,927.22).
Zeekr has also announced plans to expand into overseas markets, including the Netherlands, Sweden, Germany, Israel, and Kazakhstan, among others.
($1=7.2846 Chinese yuan renminbi)
Reporting by Zhang Yan in Shanghai and Scott Murdoch in Sydney. Additional reporting by Kane Wu in Hong Kong; Editing by Kim Coghill
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Zeekr will this week publicly release some details of its plans to list shares in New York.
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Who are the underwriters confirmed to be involved in Zeekr’s IPO?
Zeekr to Unveil Plans for New York Stock Listing
Shanghai-based electric car brand, Zeekr, is preparing to make a big splash in the market by revealing some details of its upcoming listing on the New York Stock Exchange. This move comes as Zeekr aims to capitalize on the growing enthusiasm for electric vehicles, despite the strained relations between the United States and China.
The eagerly awaited prospectus of Zeekr will soon be made public, and its shares could start trading on the stock exchange within a few weeks after the announcement, according to insiders familiar with the matter. Prominent underwriters, Goldman Sachs and Morgan Stanley, have been confirmed to be involved in the listing. However, the size and price of the initial public offering (IPO) will be determined at a later stage.
When approached for comment, Zeekr, Morgan Stanley, and Goldman Sachs declined to provide any further details.
In December of last year, Zeekr had filed for a U.S. IPO with the aim of raising over $1 billion. However, one source revealed that the company is expected to secure a lower amount than originally targeted.
A confidential filing allows companies to maintain a competitive edge by withholding information from rivals for a longer period, especially when the timeline for an IPO is not yet fixed.
If successful, Zeekr’s IPO could mark a significant milestone as the first major listing by a Chinese company in the United States in two years. This development follows Beijing’s tightening of regulations on overseas share sales in 2021, which was prompted by a cybersecurity investigation into ride-hailing giant Didi Global shortly after its U.S. stock market debut.
In February, Zeekr raised $750 million in a funding round, valuing the brand at $13 billion. Notable investors included Amnon Shashua, CEO of autonomous driving technology company Mobileye Global, and Chinese battery giant CATL.
The profitability of pure electric vehicle manufacturers has been impacted by a price war initiated by Tesla in China earlier this year. In response, these companies have been actively cutting costs and forming partnerships to survive the increasingly competitive market.
However, Zeekr has managed to improve its profitability by leveraging the manufacturing facilities and cost-saving capabilities of its parent company, Zhejiang Geely Holding Group.
CEO Andy An revealed in August that Zeekr achieved a double-digit gross profit margin in its first year of operation, which is an impressive feat in the challenging electric vehicle market.
The upcoming New York Stock Exchange listing presents an exciting opportunity for Zeekr to further expand its reach and establish itself as a major player in the electric vehicle industry. Investors and industry experts will closely watch the developments as Zeekr reveals its plans and progresses towards its IPO.
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