Evergrande Group Chairman Xu Jiayin is attending the New Energy Auto Global Strategic Partners Summit on November 12, 2019 in Guangzhou, Guangdong Province, China.
VCG | Visual China Group | Getty Images
GUANGZHOU, China – Shares of the electric vehicle unit of Chinese real estate giant Evergrande rose to 67% on Monday, after the company raised significant funds through a new sale of shares.
China Evergrande New Energy Vehicle Group rose to a record $ 50 in Hong Kong before assessing some of these gains. The company’s shares closed at $ 45.35 Hong Kong.
The shares were triggered after the Chinese electric car company issued 952.38 million shares to six investors at a price of $ 27.30 Hong Kong and grossed net income of $ 26 billion Hong Kong (3.35 billion USD).
The funding is another sign that the Chinese electric car market is heating up, and Evergrande could be a challenge for both Tesla and national rivals such as Nio and Xpeng Motors.
Last year, Evergrande unveiled six new electric vehicles under a brand called Hengchi, hoping to start production this year. The company has not yet sold a single car.
In September, the company raised around $ 4 billion from Hong Kong by selling shares to investors, including Chinese internet giant Tencent and the Didi service.
China Evergrande New Energy Vehicle Group is also preparing for a listing at the Nasdaq-style Scientific and Technological Innovation Council in Shanghai or the Star Market.
Chinese electric car companies have aggressively raised capital to increase production and take the lead in the competitive market.
Xpeng Motors raised $ 1.5 billion in an initial public offering in the United States last year and this month secured a 12.8 billion yuan ($ 1.98 billion) line of credit.
This month, BYD – the Chinese carmaker backed by US billionaire Warren Buffett – said it had raised $ 29.9 billion from Hong Kong by issuing new shares.