Eric Li proposes to privatize Zeekr one year after U.S. IPO

In China, electric vehicle brand Zeekr has announced plans for privatization by its parent company, Geely Automobile. This decision comes almost a year after Zeekr's initial public offering in the U.S. on May 8, 2024. Geely aims to acquire the remaining 34.3% of Zeekr's shares that it does not already own, offering $25.70 per American Depositary Share (ADS). With Geely possessing 65.7% of Zeekr and the total acquisition valued at approximately $2.2 billion, the move is perceived positively by investors, as reflected by a significant rise in Geely's stock price. Analysts suggest that this privatization could safeguard against potential delisting due to rising U.S.-China tensions, which have affected several Chinese companies listed on American exchanges. Additionally, privatization may streamline operations by consolidating resources, reducing competition, and enabling Geely to focus on its market opportunities amidst increasing competition in the electric vehicle sector. With solid product offerings and marketing efforts, Zeekr is expected to achieve a 12% increase in vehicle deliveries this year, aiming for a total of 320,000 vehicles from 285,441 sold in the previous year.