Road trip

30 September 2020 By Katrina Hamlin Follow @KatrinaHamlin

The property giant’s $22 bln electric-car unit plans to add a Shanghai listing. Acquisitive boss Hui Ke Yan is accelerating plans to build a vertically integrated auto group. It’s the quirkiest of China’s Tesla-wannabes. It’s daring for investors too, given the parent’s debt woes.

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China Evergrande Group has pleaded for government support to approve a restructuring plan, warning it faces a cash crunch that could lead to systemic risks, Reuters reported on Sept. 24, citing sources. Evergrande said that a document circulating online about the restructuring was a fabrication and defamation.

Earlier in the month, the company’s Hong Kong-listed electric car subsidiary, China Evergrande New Energy Vehicle, approved a proposal to issue shares on Shanghai’s STAR board. The proposed secondary listing would see the company offer 1.6 billion shares for no less than HK$25.00 per share, representing approximately 15% of the company’s enlarged issued share capital after the listing, according to a Sept. 25 filing to the Hong Kong Stock Exchange.

New Energy Vehicle completed a HK$4 billion ($516 million) placement of its Hong Kong shares to investors including Tencent, Sequoia Capital, Yunfeng Fund and Didi Chuxing on Sept. 15.

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