Automotive Author: Yizhou Gu Editor: Luke Sheehan Oct 21, 2020 01:27 PM (GMT+8)

Evergrande Auto accelerates its IPO to attract more funding for its cash-burning EV development.

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The news has emerged that Evergrande Automobile signed an IPO guidance agreement with Haitong Securities on Sep 22. On Sep 25, Evergrande Automobile further announced that it planned to offer around 1,556 million shares, which would take 15% of the total number of shares after the IPO.

According to Evergrande Automobile, 70% of the funding raised will be used for the R&D, production, and sales of New Energy Vehicles (NEV), aiming to commercialize its current NEV projects in the long run. The rest 30% of funding is for daily operation. According to Evergrande Automobile’s 2020 semiannual report, it achieved CNY 4.5 billion sales revenue, CNY 1.26 billion gross margins, and CNY 2.46 billion net loss. Following its plan, Evergrande Automobile is testing its models now, which will be available for mass production in 2021 H2.

Evergrande Automobile has raised more than HKD 4 billion from institutional investors including Sequoia, Tencent, DiDi, and Yunfeng Capital.