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Evergrande Auto to raise USD 516 million from Tencent, Sequoia Capital, Jack Ma’s YF Capital, and Didi Chuxing

Last month, Evergrande unveiled its first ever six new energy vehicle models under the Hengchi brand.

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China Evergrande New Energy Vehicle Group (HKG: 0708), also known as Evergrande Auto, disclosed on Tuesday that it will raise approximately HKD 4 billion (USD 516 million) from at least six investors.

Among them are Tencent, which already invested into the EV makers Tesla and Nio, Sequoia Capital, YF Capital, a firm co-founded by Jack Ma, and Didi Chuxing, which has nearly 1 million EVs registered on its ride-hailing platform.

The investors will buy a total of 1.7 billion new shares, representing a 2% stake of the company after all transactions are completed. Each share is priced at HKD 22.65, a discount of approximately 20% to the closing price of HKD 28.3 per share on the last trading day prior to the announcement. New proceeds will be utilized for general corporate purposes, said Evergrande Auto in the filing.

At the beginning of September, Evergrande Auto renamed from Evergrande Health in a bid to emphasize its focus on EV manufacturing. The company unveiled its first ever six new energy vehicle models in August under the Hengchi brand, including sedans, SUVs, multi-purpose vehicles, and crossovers.

Its owner, Chinese real estate developer China Evergrande Group aims to become the world’s biggest EV maker in three to five years. It started with a slew of acquisitions last year. In January, Evergrande Health gained control over Sweden-based EV manufacturer NEVS and car battery producer Shanghai CENAT New Energy.

That same month, NEVS agreed to pay a total of EUR 150 million (USD 171 million) for a majority in Swedish automaker KAAB’s parent company Alpraaz AB. In March, Evergrande bought 70% of auto parts maker TeT Drive, which owns Netherlands-based EV motor producer e-Traction, and two months later NEVS acquired Protean Holdings, a UK-based manufacturer of in-wheel electric motors for passenger cars.

Learn more: Video | Will real estate giant Evergrande succeed in the EV industry?