Evergrande EV unit down after US$347mil share sale

Evergrande NEV warned as recently as September that it faces a serious funds shortage, echoing some of the financial troubles faced by its parent company.

BEIJING: China Evergrande Group’s electric-vehicle (EV) unit fell after selling HK$2.7bil (US$347mil or RM1.45bil) of stock at a discount to bolster its finances as it seeks to put delayed vehicles into production.

China Evergrande New Energy Vehicle Group Ltd (Evergrande NEV) sold 900 million shares at HK$3 (RM1.61) each, 15% below Friday’s closing price in Hong Kong, according to a statement from the Guangzhou-based company.