Evergrande's car making arm announces HK$4 billion in funding from investors including Tencent

Evergrande NewEnergy Vehicle Group, the car making arm of China's biggest property developer China Evergrande, announced on September 15 on the Hong Kong Stock Exchange that it has raised approximately HK$4 billion in new funding.

The investors include Tencent Holdings, Sequoia Capital, Yunfeng Fund and Didi Chuxing.

The total number of placing shares is 176,580,000, representing approximately 2.04% of the total number of shares in issue as at the date of this announcement.

The placing price is HK$22.65 per share, representing a discount of approximately 19.96% to the closing price of HK$28.30 per share as of close on September 14.

Evergrande NewEnergy stated that the gross proceeds and net proceeds of the Placing and the Subscription will be approximately HK$3,999,537,000 and approximately HK$3,984,941,340, respectively, and Evergrande NewEnergy intends to use the net proceeds received from the Subscription as the Group's general corporate Uses.

In August, Evergrande NewEnergy unveiled its first batch of six vehicles in Shanghai and Guangzhou at the same time.

They are the Hengchi 1, Hengchi 2, Hengchi 3, Hengchi 4, Hengchi 5 and Hengchi 6, covering all classes from A to D, as well as passenger vehicles such as sedans, coupes, SUVs, MPVs and crossovers.

Since announcing its entry into the automotive sector, China Evergrande has launched its automotive products in just two years.

Previously named Evergrande Health, the company announced last week that it intends to change the company's name to "China Evergrande NewEnergy Vehicle Group Limited" in light of the fact that new energy vehicles have become the group's most important business.