Geely’s Zeekr Targets $5.13 Billion Valuation in Highly Anticipated U.S. IPO

    by Sidney Hunt
    Published: May 9, 2024 (2 weeks ago)

    Zeekr, the electric vehicle (EV) brand backed by Chinese automaker Geely, is preparing for a landmark initial public offering (IPO) in the United States, aiming to achieve a valuation of up to $5.13 billion. The anticipated IPO reflects Zeekr’s ambitious growth plans and underscores the intensifying competition in the global electric vehicle market.

    According to regulatory filings, Zeekr plans to offer approximately 191.1 million American depositary shares (ADS) at a target price range of $9 to $11 per ADS. If successful, the IPO could raise between $1.72 billion and $2.10 billion, valuing Zeekr at the upper end of the range.

    Zeekr’s IPO comes at a time of heightened investor interest in electric vehicle manufacturers, driven by growing consumer demand for sustainable transportation solutions and government initiatives to promote cleaner technologies.

    Geely, a prominent player in the global automotive industry, established Zeekr as its premium electric vehicle brand in 2020. The brand aims to leverage Geely’s expertise in automotive design, manufacturing, and innovation to compete in the rapidly evolving EV market.

    Zeekr’s product lineup includes the Zeekr 001 electric sedan and the Zeekr 002 electric SUV, both of which have garnered attention for their advanced technology features, impressive performance, and sleek design. The brand’s focus on premium electric vehicles positions it as a strong contender in the luxury EV segment.

    The proceeds from Zeekr’s IPO are expected to fund the brand’s expansion efforts, including research and development initiatives, production scale-up, and market penetration. Zeekr plans to capitalize on the IPO proceeds to accelerate its growth trajectory and strengthen its position in the global electric vehicle market.

    The decision to pursue a U.S. IPO underscores Zeekr’s ambition to attract international investors and broaden its shareholder base. By tapping into the U.S. capital markets, Zeekr aims to raise capital efficiently and enhance its visibility among global stakeholders.

    Zeekr’s IPO represents a significant milestone for Geely’s electric vehicle ambitions and reflects broader trends in the automotive industry’s transition towards electrification. As traditional automakers and new entrants alike compete for market share in the EV space, Zeekr’s IPO signals its determination to establish itself as a leading player in the sustainable mobility sector.

    The success of Zeekr’s IPO will be closely monitored by industry observers and investors alike, offering insights into the evolving dynamics of the electric vehicle market and the competitiveness of emerging EV brands.

    With Zeekr poised to enter a new phase of growth fueled by its IPO, the electric vehicle industry is poised for further innovation and disruption as companies race to redefine the future of transportation. Zeekr’s valuation target of up to $5.13 billion underscores the brand’s potential and sets the stage for an exciting chapter in Geely’s electrification journey.