In a strategic move that could reshape its trajectory, Chinese automotive powerhouse Zeekr is strategically considering a momentous initial public offering (IPO) in the United States. Reports from undisclosed sources suggest that Zeekr is actively engaging with potential investors across key global financial hubs such as London, New York, Hong Kong, Singapore, California, Boston, and the Middle East.
The proposed IPO, anticipated to be valued at $1 billion, follows a notable private funding round in February, which had already injected $750 million into the company. Should this endeavor bear fruit, Zeekr’s valuation could soar past an impressive $13 billion mark.
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Zeekr, a subsidiary under the Geely umbrella, had quietly initiated the process for a U.S. IPO in December 2022. Despite the low-profile filing, little information has surfaced about the company’s subsequent plans. This potential IPO undertaking, if it achieves the intended $1 billion capital influx, would solidify its position as the most significant U.S. market debut by a Chinese firm since the ride-hailing titan Didi raised $4.4 billion in mid-2021, according to sources at Reuters.
Although still in its relative infancy, Zeekr demonstrated its burgeoning prowess by selling a commendable 72,000 vehicles in 2022, with the majority finding homes within the domestic Chinese market. A vigorous projection outlined in January aimed to escalate sales to over 140,000 vehicles in the current year. Regrettably, Zeekr’s performance for the initial half of 2023 fell short of this ambitious goal, with 42,633 vehicles delivered. A beacon of hope appeared in June, when the brand tallied a robust 10,620 vehicles sold, providing a glimmer of optimism for the months ahead.
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Undeterred by the slower initial performance in 2023, Zeekr’s Chief Executive, Andy An, has maintained an ambitious stance. Following the release of Geely’s H1 2023 financial results, An affirmed Zeekr’s aspiration to astound the industry by delivering an astounding 650,000 vehicles in 2025. This audacious pursuit will be buoyed by a strategic cadence of introducing two novel vehicle models each year, each tailored to distinct market segments. The forthcoming months hold exciting prospects, with the imminent release of a new sedan by the close of 2023, followed by a duo of cutting-edge Zeekr SUVs poised for market debut in 2024.
Zeekr’s resolute drive to carve a dominant niche within the automotive landscape remains unwavering, as the company embarks on a multifaceted journey involving global investor engagement, a high-stakes IPO bid, and a determined march towards revolutionary sales targets and innovative vehicle releases.
