China Evergrande New Energy Vehicle surge on new funding

 

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China Evergrande New Energy Vehicle Group surged as much as nearly 46% to hit HK$2.5 at one point before paring gains to 26.5%.

The NEV unit of embattled property developer China Evergrande Group will issue new shares to raise funding and it will also get 600 million yuan interest-free funding to ensure the operation in its Tianjin plant. Read more …

The NEV maker will issue 5.44 billion new shares, at a price of HK$3.84 per share, raising a total of HK$20.89 billion, and it’s intended to pay off loans of NEV due against China Evergrande and its founder Hui Ka Yan, and his unit Xin Xin (BVI) Ltd, among others.

It will also issue 6.18 billion new shares to US-listed NWTN for a total consideration of HK$3.89 billion, implying a subscription price of HK$0.6297 per share. To aid business recovery, NWTN (Zhejiang) Automobile and Evergrande New Energy Vehicle (Tianjin) signed a support deal for interest-free funding of RMB600 million.