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Shares of China Evergrande’s EV unit rise after $347 mln share sale plan

HONG KONG, Nov 22 (Reuters) – Shares of China Evergrande New Energy Vehicle Group Ltd (0708.HK)rose 11.1% to HK$3.92 on Monday, after the corporate stated it deliberate to lift round $347 million in a share placement.

Embattled property developer China Evergrande’s (3333.HK) electrical car (EV) unit stated on Friday it will problem about 900 million shares, or 8.3% of the enlarged capital, at HK$3 apiece by means of a top-up placement. learn extra

The new shares are priced at a 15% low cost to their Friday’s shut of HK$3.53.

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Evergrande, the world’s most indebted developer which has been stumbling from debt-repayment deadline to deadline because it grapples with greater than $300 billion in liabilities, stated final month it plans to offer future precedence to its electrical autos enterprise over actual property.

In a submitting late on Friday, Evergrande New Energy Vehicle stated it intends use the proceeds on the analysis and improvement and manufacturing of its new vitality autos, paving the best way for placing the vehicles into manufacturing.

The EV unit has already performed a top-up placement earlier this month, elevating HK$500 million ($64.17 million) by issuing 174.8 million shares at HK$2.86 a chunk. learn extra

Evergrande’s complete holdings within the EV unit will drop to 58.54% from 63.84% after the brand new fundraising.

The unit is looking for Chinese regulatory approval to promote its inaugural Hengchi 5 sport-utility autos, because the embattled firm vows to start out making vehicles early subsequent 12 months. learn extra

Shares of Evergrande Group declined 1.1%, whereas Hang Seng Index (.HSI) eased 0.4%.

($1 = 7.7914 Hong Kong {dollars})

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Reportong by Clare Jim; Editing by Tom Hogue, Ana Nicolaci da Costa and Louise Heavens

A view of the electric vehicle (EV) factory of China Evergrande New Energy Vehicle Group in Tianjin, China October 20, 2021. REUTERS/Yilei Sun

A traffic light is seen near the headquarters of China Evergrande Group in Shenzhen, Guangdong province, China September 26, 2021. REUTERS/Aly Song

A view of the electric vehicle (EV) factory of China Evergrande New Energy Vehicle Group in Tianjin, China October 20, 2021. REUTERS/Yilei Sun

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