Evergrande Auto plans to conduct a share placement at HK$2.86 per share, a discount of 19.89 percent to Tuesday's closing price.

Evergrande Auto, the car-making arm of Chinese property developer Evergrande Group, plans to place additional shares with no fewer than six investors to secure new financing.

The company signed an agreement with the placement agent on November 9 to place 174,830,000 shares at HK$2.86 each for expected gross proceeds of about HK$500 million ($64.2 million), according to an announcement it made on the Hong Kong Stock Exchange.

That represents a 19.89 percent discount to Evergrande Auto's closing price of HK$3.57 on the Hong Kong stock market on Tuesday.

Evergrande Auto aims to raise $64.2 million through share placement-CnEVPost

The number of shares placed by the company represents 1.79 percent of the total number of shares before the issue and 1.76 percent of the total number of shares after the expansion, it said.

The company plans to use the proceeds received specifically for the research and development and manufacturing of new energy vehicles, laying the foundation for the smooth production of Hengchi vehicles, it said.

Hengchi 5 - Evergrande Auto's most developed model - has appeared in the latest issue of the catalog of the Chinese Ministry of Industry and Information Technology (MIIT), signaling that the model may only be a few months away from its official launch.

Appearing in the MIIT's catalog is the last major regulatory process for a model to be sold in China.

The model is called Hengchi 5 LX and is offered in two options, blue and black, in line with the images of the previously spotted road test.


Evergrande Auto aims to raise $64.2 million through share placement-CnEVPost