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Doris Yu · · 1 min readChinese real estate giant Evergrande raises $2.1b by selling online unit shares
“China Evergrande Group raised HK$16.4 billion (US$2.1 billion) selling a stake in its online home and car sales platform ahead of a planned US listing,” reported Bloomberg.
Details:
- Two Evergrande units issued a total of 1.3 billion new shares of a subsidiary that owns majority of the stakes of Evergrande’s online platform FCB Group. Investors will acquire a 10% share in FCB following the deal.
- FCB is looking to make its financial debut in the US as soon as Q4 2021, said people familiar with the matter. If the unit fails to go public 12 months following the completion of the shares sale, it’s required to buy them back with a 15% premium.
Context:
- Evergrande is looking to hit a minimum pre-listing valuation of 150 billion yuan (US$22.9 billion), according to the filing.
- Currently valued at about US$20 billion, FCB Group is comprised of a suite of platforms that allows users to buy and sell real estate as well as new and used cars.
Currency converted from yuan and HK dollar to US dollar: US$1 = 6.54 yuan, HK$7.77.
Editing by Miguel Cordon and September Grace Mahino
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