In a move signaling Geely Holding Group’s determination to assert itself in the competitive electric vehicle (EV) market, its premium EV subsidiary, Zeekr, has taken a significant stride by filing for an initial public offering (IPO) in the United States. This strategic move comes as part of Zeekr’s plan to capitalize on the surging demand for sustainable transportation solutions and secure additional funding for its ambitious growth trajectory.
Zeekr’s overseas listing application, submitted to the China Securities Regulatory Commission (CSRC), outlines the company’s intention to issue up to 926,074,300 ordinary shares, with the New York Stock Exchange (NYSE) being the platform of choice for its listing. While the filing specifies this intent, it remains subject to completion within the next 12 months, after which Zeekr would be required to update its application.
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The CSRC’s recent announcement, though concise in detail, signifies the regulatory steps that Chinese companies are now compelled to adhere to for U.S. listings. These measures were introduced following notable incidents such as Luckin Coffee’s financial misconduct and Didi’s tumultuous U.S. listing experience. Such regulations ensure transparency and compliance, fostering trust between investors and Chinese companies seeking overseas listings.
It’s important to underline that the submission of these offshore listing applications does not equate to immediate approval. Rather, it highlights the CSRC’s role as a gatekeeper in evaluating the suitability and integrity of these offerings.
Notably, Zeekr’s trajectory into the U.S. financial markets mirrors that of other Chinese enterprises. WeRide, an autonomous driving company, also revealed its intention to seek an overseas listing, considering options like the NYSE and the Nasdaq exchange. The growing interest in U.S. listings underscores the appeal of the American market to Chinese companies as they seek to expand their global footprint.
Zeekr, established as an independent entity in March 2021, has been instrumental in Geely’s endeavors to embrace the EV revolution. Its current product lineup, including the Zeekr 001, Zeekr 009, and Zeekr X models, underscores the brand’s commitment to innovation and sustainable mobility. In a Reuters report from December 2022, Zeekr’s aspirations to raise over $1 billion through its IPO were made public. This move was part of a broader ambition to secure a valuation exceeding $10 billion, signifying its determination to establish itself as a major player in the U.S. financial markets.
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The road to a successful IPO, however, is not without its challenges. Innovusion, a LiDAR provider for Nio, embarked on a similar journey, facing inquiries related to regulatory compliance and corporate structure. These thorough evaluations are a testament to the cautious approach regulators are taking to ensure the market’s integrity and protect investors’ interests.
As Zeekr engages in a new round of discussions with potential investors later this month, the company aims to raise approximately $1 billion in the future IPO. While the exact timeline remains uncertain, sources report that Zeekr’s valuation could soar beyond $13 billion, a testament to its burgeoning reputation and the strong interest in the EV sector.
Zeekr’s bold step toward a U.S. IPO underscores the shifting landscape of global EV competition and the increasing regulatory diligence. The outcome of this endeavor will undoubtedly shape Zeekr’s trajectory, impacting not only its growth but also the broader narrative of Chinese companies seeking a foothold in international financial markets.
