China Evergrande EV Unit To Raise $347 Million From Share Sale To Fund Production

China Evergrande's electric vehicle division is raising about HK$2.7 billion ($347 million) from a share sale to fund production of new-energy cars, it said on Friday.

China Evergrande New Energy Vehicle Group Ltd will issue about 900 million shares at HK$3 apiece through a top-up placement to controlling shareholder Evergrande Health Industry Holdings Ltd, after striking a similar deal with it last week.

The new shares account for about 9% of the company's total issued stock and are priced at a 15% discount to their Friday's close of HK$3.53.

China Evergrande has been stumbling from debt-repayment deadline to deadline as it grapples with more than $300 billion in liabilities.

The EV unit is seeking Chinese regulatory approval to sell its inaugural Hengchi 5 sport-utility vehicles, as the embattled company vows to start making cars early next year.

Earlier this month, the EV business announced plans to raise HK$500 million to fund production of cars made by its Hengchi brand.

China Evergrande, the world's most indebted developer, has been stumbling from debt-repayment deadline to deadline as it grapples with more than $300 billion in liabilities.

On Friday, the benchmark provider of Hong Kong's Hang Seng China Enterprises Index said China Evergrande Group would be removed from its index.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)