Investors are clearly excited about the Zeekr (ZK) stock initial public offering (IPO) as the electric vehicle (EV) maker plans to close its primary offering a day earlier than expected, on May 8. The company will likely begin trading two days later, on May 10, on the New York Stock Exchange under the “ZK” stock symbol.
Zeekr, a sub-brand of Chinese EV Giant Geely (OTCMKTS:GELYF) plans to sell 175 million common shares at its range between $18 and $21. This would raise about $367.5 million for the at the top end of its range, valuing the company at $5.12 billion.
Zeekr’s shortened IPO is a testament to the high demand for the Chinese car company. Reasonably so, Zeekr enjoyed $7.28 billion in revenue in 2023, a 62% growth from the year prior. Still, the company posted a net loss last year of $1.16 billion, per its Securities and Exchange (SEC) filing.
Zeekr is a sub-brand of Geely (OTCMKTS:GELYF), a big name in the Chinese automotive market.
Investors Eager for ZK Stock Despite Bearish EV-Sector Performance
Zeekr is entering a well-saturated market. Indeed, the number of EV makers in China and otherwise only continues to grow year after year. Unfortunately, the EV sector’s performance this year doesn’t exactly inspire confidence.
Indeed, EV stocks are down nearly across the board this year, with even the likes of former EV darlings like Tesla (NASDAQ:TSLA) suffering brutal losses. Indeed, TSLA stock is down nearly 30% year-to-date, having lost more than $100 billion in market capitalization.
Still, Zeekr seems confident in its ability to grow fast.
“Since our inception, we have focused on innovation in BEV architecture, hardware, software, and application of new technologies. Our efforts are backed by our strong in-house R&D capabilities, deep understanding of products, high operational flexibility, and flat, efficient organization structure,” Zeekr said in its SEC filing. “Together, these features enable fast product development, launch and iteration, and a series of customer-oriented products and go-to-market strategies. Thus, we are able to rapidly expand even with a limited operating history.”
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
