China Evergrande seeks $33.7 billion market value in Shenzhen backdoor listing: Document

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By Clare Jim

HONG KONG: Property developer China Evergrande Group said it is seeking a market value of 228 billion yuan ($33.66 billion) in its Shenzhen backdoor listing, according to a document for investors seen by Reuters on Monday.

Evergrande plans to inject all of its property projects, except for two tourism developments, into Shenzhen Special Economic Zone Real Estate & Properties (Shenzhen Real Estate) , and it aims to finish the restructuring by the end of April next year.

Evergrande first announced in early October that it plans to inject almost all of its property assets into a Shenzhen company, orchestrating a backdoor listing in mainland China aimed at boosting its valuation and making it easier for the heavily indebted company to raise funds.

Evergrande said it will become the controlling shareholder of Shenzhen Real Estate after the state-backed Shenzhen developer issues new shares and cash to an Evergrande subsidiary in exchange for China property assets. ($1 = 6.7744 Chinese yuan renminbi) (Editing by Edmund Klamann).

 

Source: Reuters