Real Estate

Shares of China property developer Evergrande dive after announcing discounted new share sale


China’s Evergrande Real Estate Group.

Brent Lewin | Bloomberg | Getty Images

SINGAPORE — Shares of China Evergrande plunged on Wednesday, after the indebted Chinese property developer said it had placed new shares at a discount.

On Wednesday morning, its Hong Kong-listed shares dived more than 16%.

The cash-strapped developer, China’s second-largest by sales, announced it raised 4.3 billion Hong Kong dollars ($555 million) in estimated gross proceeds from a share placement — a figure that fell far short of its targeted $1.1 billion. It sold 260.65 million shares at 16.50 Hong Kong dollars per piece.

China Evergrande said that it would use the cash raised to refinance its debt.



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