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.