Shanghai (ZXZC)- China Evergrande New Energy Vehicle Group Limited (Evergrande Auto), the NEV development arm of China Evergrande Group, announced on September 18 that it proposed to issue RMB shares on the Science and Technology Innovation Board (the “Sci-Tech Board” or the “STAR market”).

The company said it will make further announcements to disclose any developments about the proposed issue of RMB shares in accordance with the listing rules and other applicable laws and regulations as appropriate.

(Hengchi 1; photo source: Evergrande Group)

Evergrande Auto claimed earlier this week it had entered into top-up placing arrangements to introduced investors including Tencent Holdings Limited, Sequoia Capital, Yunfeng Fund and DiDi Chuxing, raising HK$4 billion ($516,092,400).

Evergrande Auto got its name changed from Evergrande Health in late August, as the NEV has become its most important business.

Evergrande Group is going all out to develop its NEV cause with the aim of building the world's largest and most powerful NEV group within three to five years. Through a series of cash-burning acquisitions, partnerships and other efforts, it has formed a NEV-related industrial chain that covers power battery, motor powertrains, complete vehicle manufacturing, auto sale and smart charging.

In April, the China Securities Regulatory Commission (CSRC) lowered the threshold for red chip companies applying for domestic listing, which qualified those who are valued over 20 billion yuan ($2,580,462,000) and possess independent R&D capability, global leading technologies and outstanding technology innovation ability.

Driven by the relaxation of policy restriction, Geely Auto is ready to become China's first carmaker listed on the Sci-Tech innovation board. The company announced on September 1 that it had filed for the issuance of A shares (or RMB ordinary shares) on the STAR Market to Shanghai Stock Exchange and the latter had confirmed the handling of the application.

According to the prospectus Geely Auto unveiled at the same time, the initial number of RMB shares to be issued shall not exceed 1,731,666,448 shares with par value of HK$0.02 each, representing not more than 15% of Geely Auto's issued share capital.