(Bloomberg) -- When Chinese electric-vehicle maker Zeekr lists in the US on Friday, it will be at a valuation of around $5.2 billion, less than half the $13 billion valuation announced following a funding round early last year.

The precipitous change in fortunes has surprised even the company’s top management. In November, when Zeekr first tried to come to market, Chief Executive Officer Andy An was disappointed when bankers suggested a valuation of between $8 billion and $9 billion, according to people familiar with the discussions.

And while Zeekr priced its sale at $21 a share — the high end of the marketed range — parent Zhejiang Geely Holding Group Co. has indicated it will subscribe to more than 90% of the stock, a sign of the wariness that exists amid a bruising price war in China and slowing demand for electric cars worldwide.

Read More: China EV Maker Zeekr’s US IPO Draws Analyst Approval

Zeekr Vice President Jason Lin says the company takes a long-term view when it comes to capital markets and isn’t going public in the US because of financial pressures.

The float of Zeekr Intelligent Technology Holding Ltd. is still set to be the biggest IPO of a Chinese company in the US since 2021, when Chinese ride-hailing giant Didi Global went public for $4.4 billion, only to delist within months after Chinese regulators launched a cybersecurity investigation and suspended its app for more than a year.

In raising around $441 million by selling 21 million primary American depositary shares, Zeekr will be the first major Chinese EV maker to go public in the US since Xpeng Inc. and Li Auto Inc. debuted four years ago.

“In the first half of April, China’s passenger car market recorded a new-energy vehicle penetration rate of more than 50%, signifying a major breakthrough,” Lin said. “As Zeekr launches more and more models, including the 009 Grand and the MIX, our business will hit a fast growth phase.”

Zeekr started delivering its cars overseas in October and is pushing ahead with global expansion. Listing in the US and complying with the country’s financial regulations will help with Zeekr’s international growth, Lin said.

Entering the US passenger car market is looking unlikely, however, considering the Biden administration is set to impose wide-ranging tariffs on key Chinese sectors, including EVs and batteries, Bloomberg News reported.

Read More: Biden Set to Impose Tariffs on China EVs, Strategic Sectors

Back home, the price war is only escalating.

China’s best-selling carmaker BYD Co. has slashed prices across much of its lineup this year. According to Cui Dongshu, the secretary general of the China Passenger Car Association, automakers cut sticker prices on 67 models in the first quarter, compared to 102 all of last year. The latest version of Zeekr’s best-selling crossover hatchback, the 001, was selling for 269,800 yuan ($37,300) in February, down from 300,000 yuan last year.

Read More: BYD Takes On EV Laggards Toyota, VW With Steep China Price Cuts

Investors are showing concerns. Tesla Inc.’s stock is down more than 30% this year, while shares of Xpeng, Nio Inc. and Li Auto have tumbled 44%, 41% and 27%, respectively.

Michael Dunne, an auto-industry consultant who previously worked for General Motors Co. in Asia, says every EV maker in China is facing unprecedented pricing pressure, and most are scrambling to cut costs and hoard cash.

Zeekr’s listing in New York will raise fresh funds and provide an imprimatur of credibility, Dunne said. “Given the circumstances, Zeekr can’t be too picky about the valuation,” he said, noting that fellow Geely-owned EV maker Polestar has seen its valuation dip recently to just $2.5 billion.

The empire of Geely and its billionaire founder, Li Shufu, also spans stakes in Sweden’s Volvo Car, Germany’s Mercedes-Benz, the UK’s Aston Martin and Malaysia’s Proton, and the group is in the process of pooling combustion-engine businesses with France’s Renault SA.

Zeekr leverages key resources of its parent including the Sustainable Experience Architecture, a Geely-developed vehicle platform. It also controls a European research center that provides design services for Volvo, Polestar and Lynk & Co, which has been renamed Zeekr Technology Europe.

Still, Zeekr notes in its IPO filing that Geely Auto “may offer products or services that directly compete with ours.”

Read More: Chinese Tycoon With Mercedes, Volvo Stakes Struggles Against BYD

While revenue rose 62% last year to $7.28 billion and vehicle gross margin improved to 15%, Zeekr isn’t yet profitable due to spending on research and development. The company posted a $1.16 billion net loss last year, according to its registration statement.

Lin is confident Zeekr can build a global brand and sustain growth after having launched five car models in three years, with another major SUV unveiling slated for the second half.

“Zeekr is China’s best-selling premium battery EV brand, and our sales so far in 2024 have surpassed Nio, Xpeng and others,” he said. Zeekr is “second only to Tesla, if you count international brands.”

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