GPs join $516m investment in Evergrande's EV unit

The Hong Kong-listed company sold 1.73 billion shares for HK$22.65 apiece, which represents a 19.9% discount to the September 14 closing price, according to a filing. The new share subscription equates to a 2% stake.

Evergrande NEV manufactures new energy vehicles - it released six new models in August and is building production bases in Shanghai and Guangzhou - and owns health management businesses. It was originally known as Evergrande Health but was rebranded in June following the acquisition of Swedish electric vehicle maker NEVS.

The company claims that its factories are based on an industry 4.0 automation framework and are equipped with more than 2,500 robots. In October of last year, Jiayin Xu, Evergrande Group's chairman, announced plans to establish an annual production capacity of one million EVs. He wants Evergrande to become the world's largest new energy vehicle group within five years.

China’s EV industry has recovered from a difficult 2019 and seen two IPOs in the US this year. vehicle sector has performed well in two recent US IPOs. First, Li Auto raised $1.1 billion through a NASDAQ offering in July, and then Xpeng tapped the New York Stock Exchange for $1.5 billion in August.

With Nio listing in 2018, WM Motor Technology is the last of China's well-funded independent EV start-ups in private hands. 

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Greater China
• PIPEs
• Technology
• Industrials
• China
• automobiles
• Sequoia Capital
• Tencent
• Yunfeng Capital