Zeekr, one of Chinese automaker Geely's upmarket electric car brands, has confidentially filed for a US initial public offering, aiming to raise more than $1 billion.
Zeekr 001
Geely's Competitors in China - Tesla and BYD
Zeekr was established by Geely, formally known as Zhejiang Geely Holding Group, in April 2021 to tap into increasing Chinese demand for premium EVs. It launched the 001 crossover in China later that year.
The 001 model starts at 299,000 yuan in China, slightly more than the 288,000 yuan for Tesla's Model Y which had a recent price cut.
Geely faces a complexity that larger EV makers $BYD COMPANY(01211)$ and $Tesla Motors(TSLA)$ have avoided in favor of vertical integration and an approach to manufacturing that allows them to bring costs down.
Zeekr sold just over 60,600 cars in the first nine months of 2022 which compares with roughly 285,900 Model Y crossovers for Tesla in China in the same period, according to the China Passenger Car Association.
The 001 crossover also competes with Chinese peer Nio Inc in Europe next year. In doing so, it joins a growing list of Chinese automakers looking to launch or expand sales of EVs in the region.
The company also markets EVs under the Geely brand, through Smart - a venture with Mercedes Benz and Lynk & Co - another venture with Volvo that aims to carve out a niche for EVs on a fixed-cost, subscription basis.
Zeekr's IPO With Significance
Zeekr is seeking a valuation of more than $10 billion. That compares with a valuation of about $9 billion in its maiden external fundraising last year.
The IPO filing comes after Beijing and Washington reached a landmark auditing deal in August, sharply reducing the threat of delisting for more than 200 New York-listed Chinese companies.
Only five Chinese companies have completed U.S. IPOs this year, raising a combined $162.5 million, according to Refinitiv data - a far cry from the $12.8 billion raised last year.
Comments