HONG KONG, Nov 17 (Businesshala) – China Evergrande Group (3333.HK) has dissolved several district-level units of its online real estate and automobile marketplace, Fengchebao (FCB), due to shrinking capital and business, Chinese Media outlet Cailianshe reported on Wednesday, citing sources close to the beleaguered developer.
FCB had planned to go for an initial public offering (IPO) by the end of this year or early next year. Evergrande sold 10% of the company in March to 17 investors for $2.10 billion, at a pre-financing valuation of more than 150 billion yuan ($23.48 billion).
Evergrande did not immediately respond to a request for comment.
The world’s most indebted property developer, with liabilities of more than $300 billion, is scrambling for funds to pay off many of its lenders as well as contractors.
It had expected to close businesses including FCBs and bottled water to raise funds.
($1 = 6.3880 Chinese Yuan Renminbi)