ZK Stock Alert: Zeekr IPO Looks Hot Ahead of EV Maker’s Debut

Investors are clearly excited Zeekr (ZK) Initial public offering (initial public offering), as the electric vehicle (EV) maker plans to close its main offering a day earlier than expected on May 8. The company is expected to begin trading two days later, on May 10 New York Stock Exchange under the ticker symbol “ZK”.

Zeekr, a sub-brand of Chinese EV Giant Geely (OTCMKTS:GELYF) plans to sell 175 million shares of common stock at a price between $18 and $21. This would net the company about $367.5 million at the high end of its range, valuing the company at $5.12 billion.

Zeekr’s abbreviated IPO is evidence of the high demand for the Chinese car company. For good reason, Zeekr posted revenue of $7.28 billion in 2023, a year-over-year growth of 62%. Still, the company posted a net loss of $1.16 billion last year, according to its filing with the Securities and Exchange (SEC).

Zeekr is a sub-brand of Geely (OTCMKTS:GELYF), a big name in the Chinese automobile market.

Investors are excited about ZK stock despite the EV sector’s declining performance

Zeekr is entering a well-saturated market. In fact, the number of electric vehicle manufacturers in China and elsewhere continues to grow year after year. Unfortunately, the electric vehicle sector’s performance this year doesn’t exactly inspire confidence.

In fact, electric vehicle stocks are down almost across the board this year, and that’s even true for stocks of former electric car darlings Tesla (NASDAQ:TSLA) suffered brutal losses. In fact, TSLA stock is down nearly 30% year-to-date after losing more than $100 billion in market cap.

Still, Zeekr seems confident in its ability to grow quickly.

“Since our founding, we have focused on innovations in BEV architecture, hardware, software and the application of new technologies. Our efforts are supported by our strong internal research and development capabilities, deep product understanding, high operational flexibility and flat, efficient organizational structure,” Zeekr said in its SEC filing. “Together, these capabilities enable rapid product development, launch and iteration, as well as a range of customer-focused products and go-to-market strategies. This enables us to expand quickly even with a limited operating history.”

At the time of publication, Shrey Dua did not hold, directly or indirectly, any positions in any of the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s publication policies.