By Jiahui Huang

China's Geely Automobile looks to take its electric-vehicle brand Zeekr private just one year after the company went public in the U.S. as the auto giant faces stiff competition in its home market.

Hangzhou-based Geely said Wednesday that it submitted a privatization bid valuing Zeekr at $2.566 a share, or $25.66 per American depositary share.

Shares in Zeekr rose 12% in U.S. premarket trading after the news.

Geely said that taking the brand private will optimize its internal resources, eliminate redundant investments, cut costs and create long-term value.

Analysts said the delisting was expected, as Zeekr has long been undervalued by the market.

"Zeekr didn't go public at a good time last year," CCB International analyst Qu Ke said.

Zeekr initially filed for an initial public offering with a valuation of more than $13 billion but postponed the plan after a chill in the U.S. new-listing market. It later went public with a valuation of around $5 billion.

Zeekr's shares have lost 20% of their value this year. Aiming to better compete in the world's largest auto market, the EV maker recently acquired a 50% stake in Lynk & Co, another marque in Geely's stable, forming Zeekr Group.

The group said in February that it aimed to sell 710,000 vehicles in 2025, implying annual growth of 40%, and planned to "fully surpass" BMW, Mercedes-Benz and Audi in the Chinese luxury EV sector within the next two years.

Given that the group is backed by Geely, privatization will minimize damage to the business and make the brand easier to manage, CCB's Qu said.

Write to Jiahui Huang at jiahui.huang@wsj.com

(END) Dow Jones Newswires

May 07, 2025 07:26 ET (11:26 GMT)

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