(Reuters) New Energy Vehicle Group Ltd., Evergrande’s electric vehicle unit, fell up to 3.1% before recovering on Monday in Hong Kong after news it was planning a share placement to raise about $347 million.
The 900 million shares represented 8.3% of the unit’s enlarged capital and were offered at HK$3 apiece.
Evergrande’s EV unit says it intends to use the proceeds of the share sale in its research and production of new energy vehicles.
New Energy Vehicle Group is already seeking Chinese authorization to sell its inaugural Hengchi 5 sport-utility vehicles, ahead of its car production in early 2022.
The EV unit has already raised HK$500 million or $64.17 million this month by issuing almost 175 million shares.
At HK$3, the EV shares were offered at a 15% discount from Friday when it closed at HK$3.53. The share sale will see Evergrande’s holding in the EV unit drop from 63.84% to 58.54%.
0708: HKG is currently up +11.05%, 3333: HKG is down -1.08%.
