The Strategist

Reuters: Premium electric car brand from China returns to U.S. IPO plans

04/04/2024 - 06:45

Geely's premium electric vehicle brand Zeekr has resumed preparations for an initial public offering (IPO) in the US, according to sources cited by Reuters. Zeekr later lowered its estimates in half from the $1 billion it had originally hoped to raise in the deal.

According to Reuters, which cites people familiar with the matter, Zeekr, a high-end electric vehicle brand owned by Chinese manufacturer Geely, is reviving its ambitions for an initial public offering in the United States.

Zeekr quietly submitted an initial public offering (IPO) application in late 2022. The Chinese company anticipated raising over $1 billion at that time, with a $10 billion valuation. The offering might be the first significant one since Beijing tightened regulations on the selling of foreign stocks in July 2021.

Zeekr put the IPO on hold in November 2023. Reuters reported at the time that the carmaker aimed to raise $500 million. According to the sources, Zeekr was forced to halt work on its initial public offering (IPO) because of the instability of the world's financial markets and its inability to come to a valuation agreement with investors.

According to sources close to the news agency, Zeekr has now resumed its IPO ambitions and is meeting with investors. In response to the agency's question, the company stated that it was still in the preliminary stages and had submitted an application to the Securities and Exchange Commission (SEC) of the United States.


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