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China Evergrande EV unit to raise $347 million from share sale to fund production -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO – A view of China Evergrande New Energy Vehicle Group’s electric vehicle factory in Tianjin (China), October 20, 2021. REUTERS/Yilei Sun

(Reuters) – China Evergrande’s electric vehicle division raised about HK$2.7billion ($347m) through a share sale, the company announced on Friday. The funds will be used to finance new-energy vehicles.

China Evergrande New Energy Vehicle Group Ltd is set to issue approximately 900,000,000 shares for HK$3 each through a top up placement to Evergrande Health Industry Holdings Ltd. This follows a similar agreement that was struck with the company last week.

New shares make up about 9% in total stock of company and are sold at a 15% discount from their Friday closing of HK$3.53.

As the company struggles to make cars, it is requesting Chinese regulatory approval for its Hengchi5 sport-utility vehicle.

An earlier announcement by the EV industry was made to announce plans to raise HK$500 millions to help fund production of Hengchi cars.

China Evergrande has become the world’s largest developer in debt, bouncing from one deadline for its repayments to another as it struggles with over $300 billion of liabilities.

The benchmark provider for Hong Kong’s China Enterprises Index, China Evergrande Group, announced Friday that it would be removing China Evergrande Group from the index.

($1 = 7.7925 Hong Kong dollars)

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