By P.R. Venkat
China Evergrande New Energy Vehicle Group Ltd. is planning to issue up to 1.56 billion shares in a yuan-denominated stock offering on a platform for China's homegrown tech firms.
The auto unit of real-estate giant China Evergrande Group said the base offer price was 25 Hong Kong dollars (US$3.23) a share, the company said late Friday.
"If the offer price is lower than the aforesaid trading price of the Hong Kong shares, the board will decide whether to proceed with the proposed issue of CNY Shares after considering the market conditions," the company said.
Calculated on the base offer price of HK$25, the offering would raise around HK$39.90 billion.
Shares will be listed on the Shanghai Stock Exchange's Star Market.
The proposed listing marks China Evergrande New Energy Vehicle's accelerated push to beef up its war chest to compete in China's electric vehicle market. Earlier this month, the company said it would raise US$514 million via a share placement to investors, including Tencent Holdings and venture-capital firm Sequoia Capital.
Proceeds from the offering will be used for research and development as well as for working capital needs.
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