China Evergrande New Energy Vehicle Group's stock rose 11.1% to HK$3.92 on Monday after the company announced plans to raise $347 million through a share placement.
The electric vehicle (EV) unit of embattled property developer China Evergrande announced on Friday that it would issue approximately 900 million shares, or 8.3% of the enlarged capital, at HK$3 per share through a top-up placement.
Evergrande, the world's most indebted developer, has been stumbling from debt-repayment deadline to debt-repayment deadline as it grapples with more than $300 billion in liabilities, announced last month that it plans to prioritize its electric vehicle business over real estate in the future.
Evergrande New Energy Vehicle said in a filing late Friday that the proceeds will be used for research and development and production of its new energy vehicles, paving the way for the cars to go into production.
Earlier this month, the EV unit completed a top-up placement, raising HK$500 million ($64.17 million) by issuing 174.8 million shares at HK$2.86 each.
Following the new fundraising, Evergrande's total holdings in the EV unit will fall to 58.54% from 63.84%.