BEIJING: China Evergrande Group’s electric-vehicle (EV) unit fell after selling HK$2.7bil (US$347mil or RM1.45bil) of stock at a discount to bolster its finances as it seeks to put delayed vehicles into production.

       China Evergrande New Energy Vehicle Group Ltd (Evergrande NEV) sold 900 million shares at HK$3 (RM1.61) each, 15% below Friday’s closing price in Hong Kong, according to a statement from the Guangzhou-based company.

       The stock, representing 9% of the firm, was sold to at least six investors, the company said.

       The shares fell to as low as HK$3.42 (RM1.84) in early trading yesterday after the sale, which adds to the US$64mil (RM267.68mil) it raised on Nov 10.

       Evergrande NEV warned as recently as September that it faces a serious funds shortage, echoing some of the financial troubles faced by its parent company.

       The startup said it had suspended paying some operating expenses and suppliers had stopped work, stoking concern it wouldn’t be able to start mass production of its long-awaited EVs.

       At its peak, Evergrande NEV was one of the most valuable assets in Evergrande founder Hui Ka Yan’s empire, and a potential source of funds to prop up the developer.

       The stock has plunged from a record high close of HK$72.25 (RM38.78) in February, before a selloff as the unit’s parent company battled to ease a liquidity crisis.

       “Evergrande is now showing willingness to take a wide range of steps to improve its liquidity,” Bloomberg Intelligence’s credit analysts Daniel Fan and Hui Yen Tay wrote in a note yesterday.

       Evergrande’s recent fundraising efforts include a selling of its remaining 18% stake in Internet services platform HengTen Networks Group Ltd for HK$2.13bil (RM1.14bil) on Nov 17.

       Evergrande will receive 20% of those sale proceeds this week with the other 80%, about US$220mil (RM920.15mil), to be wired by mid-January, according to a filing.

       An associate of chairman Hui Ka Yan has pledged two luxury houses in Hong Kong as collateral to borrow US$105mil (RM439.16mil), according to local land documents.

       That adds to another luxury house pledged last month for an estimated loan as much as US$38.6mil (RM161.44mil), according to local media HK01.

       On Nov 9, Evergrande NEV planned to raise HK$500mil (RM268.41mil) in a share sale. Proceeds will be used for research and development for EVs. Evergrande held 65% of the shares in NEV at the time. — Bloomberg