© Reuters.
Zeekr Intelligent, the electric vehicle unit of Geely Automobile Holdings Ltd (0175.HK), is moving ahead with plans for an IPO in New York, aiming to raise around $500 million. The move comes amid heightened geopolitical tensions and regulatory challenges in the United States and Europe.
On Tuesday, Zeekr announced its intention to list on the New York Stock Exchange. The company, which has yet to turn a net profit, reported solid revenue of 21 billion yuan ($2.9 billion) for the first half. The IPO should allow it to sustain its expansion and compete with industry giants such as Tesla. Zeekr’s product line includes luxury car sales that generated $1.8 billion, and the company is also diversifying its portfolio through Viridi battery sales and research and development services.
Despite these ambitious plans, Geely Auto shares saw a 2.9% decline on Friday, November 10, 2023, reflecting investor caution as the market capitalization stood at $12.3 billion. This drop came shortly after Zeekr made its IPO filing public on Thursday, November 9, 2023.
The company’s U.S. expansion plans include launching robo-taxis, but they face significant regulatory hurdles. In China, data management regulations require foreign-invested companies like Zeekr to operate through approved partners. In addition, almost half of its receivables and more than half of its purchases in 2022 involve related parties within the Geely group.
Recent high-level talks between Chinese President Xi Jinping and U.S. President Joe Biden have done little to ease strained U.S.-China relations, making the company’s IPO even more complex. Zeekr in the United States.
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2023-11-21 12:27:00
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