Zeekr seeking a valuation of USD 18 billion for US stock market listing

Technology Author: Violet Chen Sep 20, 2023 09:42 PM (GMT+8)

Zeekr Intelligent Technology Holding Limited (“Zeekr”) is seeking a valuation of USD 18 billion to be listed in the United States.

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Zeekr is a high-end intelligent electric vehicle brand under Geely, focusing on the research and development of intelligent electric cars, forming a full industry chain from research and development design, production and manufacturing to marketing and after-sales service. From product innovation, user experience innovation to business model innovation, it is committed to providing users with the ultimate travel experience.

According to Zeekr, its smart factory fully introduces intelligent and digital technologies, using 5G+industrial internet technology as the carrier, and creating a new factory intelligent manufacturing system that integrates transparency, agility, and intelligence. In addition, the M-Vision created by Zeekr for future intelligent travel has further advanced in unmanned driving, becoming the world's first pure electric architecture specifically developed for unmanned mobile travel.

According to Vantage Market Research, the global electric vehicle market is valued at USD 193.55 billion in 2022 and is projected to reach USD 693.70 billion by 2030, with a CAGR of 17.3%. This growth is driven by decreasing cost of new energy vehicles, improvements in performances and government policy support.

China and Europe are the main driving forces behind global electric vehicle sales. The main players in the market include BYD (比亚迪), Changan Automobile (长安汽车), Ideal (理想), and NIO (蔚来) in China, Tesla in the United States, Toyota in Japan, Kia in South Korea, BMW and Mercedes in Germany, Stellantis in Italy, and Renault in France etc.

Gui Lingfeng, a director of Korney Consulting, stated: “From public market information, a market to sales ratio of 2 to 3 times puts Geely in the 'first tier' and has a promising valuation prospect. Zeekr relies on Geely and has the advantage of sharing R&D investment and capital expenditure with other Geely brands. Investors will see whether Zeekr's R&D and supply procurement costs can pass Geely's scale advantage, it will ultimately be reflected in the gross profit margin data in the financial report.”

As of early September, Zeekr has held water testing meetings with investment institutions in Singapore and some European countries. From the preliminary negotiation results, Zeekr hopes to obtain a valuation of USD 18 billion. Previously, Zeekr had already received investments from investors such as CATL (宁德时代), Yuexiu Industrial Fund (越秀产业基金), Tongshang Fund (通商基金), Quzhou Holding Group (衢州金融控股), and Amnon Shahua in the A-round financing.