Evergrande Chairman Sold 1.2 Billion Share to Raise Fund
Evergraned update: Shares of Evergrande plunged as much as 8% after the company's chairman sold 1.2 billion shares
Chinese distressed real estate developers face nearly $1.3 billion bond payments in December, according to a Bloomberg report. China Evergrande Group and Kaisa Group Holdings Ltd. to see grace period ending in the mid of December. Meanwhile, China Overseas and Investment Ltd. agreed to sell stake in a project for about $137 million, according to Bloomberg.
Evergrande’s shares listed in the Hong Kong stock exchange plunged as much as 8% on Monday after the company’s chairman Hui Ka Yan divested his stake to raise fund of about $344 million. According to the company’s statement, Hui sold total of 1.2 billion shares with an average price of Hk$2.23 each which is a discount of 20% from the closing price on November 24.
Investors are eagerly waiting for the outcome of the company’s coupon payment totaling $82.5 million which was due on November 6 and the 30-day grace period to end on December 6.