SHANGHAI, Nov 9 (Reuters) – Zeekr, the electric car brand of Chinese automaker Geely, will unveil details this week of its planned initial public offering (IPO) in New York, according to two sources familiar with the matter, in order to to benefit from the growing enthusiasm for electric vehicles (EVs) despite tense relations between the United States and China.
The EV brand will publish its prospectus and trading could begin within weeks of the announcement, the sources said.
Both sources preferred to remain anonymous, discussing confidential information.
Goldman Sachs and Morgan Stanley are leading the subscription operations, a source said, adding that the size and price of the issue will be decided later.
Zeekr, Morgan Stanley and Goldman Sachs declined to comment.
Reuters previously reported that Zeekr filed a confidential U.S. IPO last December to raise more than $1 billion.
One of the sources, however, indicated that the size of Zeekr’s IPO would be lower than this target.
A confidential filing allows companies to keep details hidden from rivals for longer and have greater flexibility, especially when the timetable for an IPO is not set.
The IPO could mark the first major launch of a Chinese company in the United States since 2021 and Beijing’s tightening of overseas listings.
In February, Zeekr raised $750 million (€701.72 million) in a financing valuing the brand at $13 billion from investors including Amnon Shashua, CEO of the driving technology company autonomous Mobileye Global majority-owned by Intel Corp O and Chinese battery giant CATL.
Tesla’s price war in China earlier this year is weighing on the profitability of electric vehicle makers, who have stepped up efforts to cut costs and establish partnerships to resist the consolidation of competition.
Zeekr, which benefits from the production facilities and cost-cutting capabilities of Zhejiang Geely Holding Group, however, saw its profitability improve.
Its chief executive Andy An told reporters in August that the brand achieved a double-digit gross margin in the first half of this year, compared to a gross margin of 5% in 2022.
Founded in 2021, Zeekr ranks 13th among all electric vehicle brands in China, with 79,028 units sold in the first nine months, more than double compared to the same period in 2022.
The group plans to sell its four models currently available in China abroad, including in the Netherlands, Sweden, Germany, Israel and Kazakhstan. (Reporting by Zhang Yan in Shanghai and Scott Murdoch in Sydney; with contributions from Kane Wu in Hong Kong; French version by Dagmarah Mackos, edited by Blandine Hénault)
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