China Evergrande EV unit to raise $347 mln from share sale to fund production
China Evergrande's (3333.HK) electric vehicle division is raising about HK$2.7 billion ($347 million) from a share sale to fund production of new-energy cars, it said on Friday.
China Evergrande New Energy Vehicle Group Ltd (0708.HK) will issue about 900 million shares at HK$3 apiece through a top-up placement to controlling shareholder Evergrande Health Industry Holdings Ltd, after striking a similar deal with it last week.
The new shares account for about 9% of the company's total issued stock and are priced at a 15% discount to their Friday's close of HK$3.53.
The EV unit is seeking Chinese regulatory approval to sell its inaugural Hengchi 5 sport-utility vehicles, as the embattled company vows to start making cars early next year.
Earlier this month, the EV business announced plans to raise HK$500 million to fund production of cars made by its Hengchi brand.
China Evergrande, the world's most indebted developer, has been stumbling from debt-repayment deadline to deadline as it grapples with more than $300 billion in liabilities.
On Friday, the benchmark provider of Hong Kong's Hang Seng China Enterprises Index (.HSCE) said China Evergrande Group would be removed from its index.
($1 = 7.7925 Hong Kong dollars)