Real Estate Development

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

China’s Evergrande True Estate Group.

Brent Lewin | Bloomberg | Getty Photos

SINGAPORE — Shares of China Evergrande plunged on Wednesday, soon after the indebted Chinese home developer said it had put new shares at a discounted.

On Wednesday morning, its Hong Kong-stated shares dived extra than sixteen%.

The dollars-strapped developer, China’s next-premier by gross sales, announced it elevated four.three billion Hong Kong pounds ($555 million) in estimated gross proceeds from a share placement — a figure that fell much quick of its specific $1.1 billion. It offered 260.65 million shares at sixteen.fifty Hong Kong pounds for every piece.

China Evergrande said that it would use the dollars elevated to refinance its personal debt.

The dollars-strapped organization was downgraded by S&P International Rating from “stable” to “detrimental” not too long ago. The scores big explained that Evergrande’s liquidity was weakening, and its quick-time period personal debt has ongoing to surge

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