Extreme krypton, about to withdraw from the market!

From brand release to IPO, it took 37 months. It takes less than 12 months from listing to planned delisting.

On May 7th, Geely Automobile announced that it would buy all the shares issued by Krypton.

Geely originally holds 65.7% of the shares of Kykrypton. If this acquisition is completed, Kykrypton will be completely merged with Geely Automobile, and then delisted from the New York Stock Exchange and become a wholly-owned subsidiary of Geely Automobile.

Geely did this mainly to implement the Taizhou Declaration. "Taizhou Declaration" mentioned that we should focus on the main automobile industry, improve the efficiency of resource utilization, and let all brands develop synergistically.

From the practical benefits, the privatization of Krypton will enable Geely to have a unified listing platform, integrate the assets and resources of Krypton, and enhance the competitiveness of passenger car business.

Geely’s offer this time is quite sincere, with $2.57 per krypton share or $25.66 per American Depositary Share.

This price is about 13.6% higher than the closing price of American Depositary Shares on the New York Stock Exchange on the last trading day, and 20% higher than the weighted average price of the past 30 trading days.

Such a high premium shows that Geely attaches great importance to krypton and recognizes its value. As soon as the news came out, the pre-market share price of Krypton US stocks rose by over 11%, which was close to the price given by Geely.

Speaking of it, the speed of listing krypton is called a fast one.

In 2021, Krypton became independent from the pure electricity department of Lectra. In just 37 months, it successfully landed on the New York Stock Exchange on May 10, 2024, becoming the fastest listed new car manufacturer in China.

If you close for a long time, you will be divided, and if you close for a long time, so will car companies. However, it was extremely krypton that was independent from Lingke before, and now it has become extremely krypton "swallowing" Lingke. After all, the name of the two merged companies is extremely krypton.

But who would have thought that less than a year after listing, it will be delisted again, and the reasons behind it are quite complicated. On the one hand, from the perspective of Geely’s own development strategy, integrating resources and returning to "one Geely" is the key.

Geely has successively integrated many businesses before, such as Geely Geometry, Wing Zhen and Radar, which were merged into Geely Galaxy, and Link merged into Krypton to establish Krypton Technology Group.

On the other hand, it is the influence of the big environment. The topic of the return of Chinese stocks has been hotly debated by everyone. The privatization and delisting of Krypton just happened to catch up with this trend and became the "first share" of the return of China Stock Exchange.

Although the listing speed of Krypton is extremely fast, its performance in the US stock market is hardly satisfactory, which also makes it difficult for the institutional funds behind Krypton to get returns and even get stuck.

Say a few more words

At present, the pressure of brand development is not small. The target sales volume of Extreme Krypton Technology Group this year is 790,000 vehicles, including 390,000 vehicles of Lingke and 320,000 vehicles of Extreme Krypton. Judging from the sales data of the first four months, the situation is not very optimistic.

The brand sold 100,000 vehicles in the first four months, achieving 25.6% of the annual target. As for Krypton, the cumulative sales volume in the first four months was only 55,000 vehicles, only 17.2% of the annual target sales volume was completed.

In April, the monthly sales volume of Krypton was even worse, reaching 13,727 vehicles, down from the same period last month, down by nearly 15% year-on-year and down by 11% month-on-month.???