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January 26, 2021

Evergrande shares jump 60% after $3.4bn fund raising

China Evergrande New Energy Vehicle Group saw its share price surge by over 60% on Monday after news emerged that it had successfully raised CNY26bn (US$3.35bn) in a recent share placing.

By bcusack

China Evergrande New Energy Vehicle Group saw its share price surge by over 60% on Monday after news emerged that it had successfully raised CNY26bn (US$3.35bn) in a recent share placing. 

The electric vehicle (EV) startup, listed on the Hong Kong Stock Exchange, issued 952.38m new shares to six investors at a price of HK$27.30.

The fundraising was seen by the market as a sign that the company would be able to fulfill its ambitions of taking domestic rivals such as Nio and Xpeng and even Tesla in the fast-growing Chinese electric vehicle market.

The company, part of the Evergrande Group, one of China's largest property developers, unveiled six electric vehicle prototypes under its Hengchi brand, including sedans, MPVs and SUVs, at media events across China last year.

Last September China Evergrande New Energy Vehicle Group raised HK$4bn through a share placing with private investors including Chinese internet giant Tencent and ride-hailing service Didi.

The company is currently preparing to list its shares on Shanghai's Nasdaq-style Science and Technology Innovation Board, or Star Market.

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