Shares of Evergrande’s Electric Car Unit Jump 11% on Fundraising Plan

Shares of China Evergrande Group’s electric-vehicle unit jumped on Monday after the company announced it was planning to sell around HK$2.7 billion ($347 million) worth of stock to fund production of its first-ever new-energy vehicle (NEV) amid ongoing liquidity issues.

Hong Kong-listed China Evergrande New Energy Vehicle Group Ltd. (Evergrande Auto) said it was planning to sell 900 million shares, or 9.05% of its total issued shares through a top-up placing to at least six investors for HK$3 apiece, according to a filing issued to the bourse on Friday evening. The figure represents a 15% discount to the company’s closing price that same day.