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Weekly news of 23rd of November

China Evergrande EV unit to raise $347 mln from share sale to fund production

China Evergrande’s electric vehicle division is raising about HK$2.7 billion ($347 million) from a share sale to fund production of new-energy cars, reports Reuters.
China Evergrande New Energy Vehicle Group will issue about 900 million shares at HK$3 apiece through a top-up placement to controlling shareholder Evergrande Health Industry Holdings Ltd, after striking a similar deal with it last week.
The new shares account for about 9% of the company’s total issued stock and are priced at a 15% discount to their Friday’s close of HK$3.53.
The EV unit is seeking Chinese regulatory approval to sell its inaugural Hengchi 5 sport-utility vehicles, as the embattled company vows to start making cars early next year.
Earlier this month, the EV business announced plans to raise HK$500 million to fund production of cars made by its Hengchi brand.
China Evergrande, the world’s most indebted developer, has been stumbling from debt- repayment deadline to deadline as it grapples with more than $300 billion in liabilities.

Yara debuts world’s first autonomous electric container ship

The world’s first fully electric and self-steering container ship, owned by fertiliser maker Yara, is preparing to navigate Norway’s southern coast and play its part in the country’s plans to clean-up its industry, reports Reuters.
The Yara Birkeland, an 80-metre-long (87 yards) so-called feeder, is set to replace lorry haulage between Yara’s plant in Porsgrunn in southern Norway and its export port in Brevik, about 14 km (8.7 miles) away by road, starting next year.
It will cut 1,000 tonnes of carbon emissions per year, equivalent to 40,000 diesel-powered journeys by road, and is expected to be fully autonomous in two years.

For Yara it means reducing CO2 emissions at its plant in Porsgrunn, one of Norway’s single largest sources of CO2.
Built by Vard Norway, Kongsberg provided key technology including the sensors and integration required for remote and autonomous operations.
The ship will load and offload its cargo, recharge its batteries and also navigate without human involvement.
Sensors will be able to quickly detect and understand objects like kayaks in the water so the ship can decide what action to take to avoid hitting anything.
The system should be an improvement over having a manual system, he added.
The ship, which will do two journeys per week to start with, has capacity to ship 120 20-foot containers of fertiliser at a time. It is powered by batteries provided by Swiss Leclanche packing 7 megawatt hours over eight battery rooms, the equivalent of 100 Tesla cars.

Samsara Files for IPO in Record Year for U.S. Software Listings

Samsara filed for an initial public offering, adding to a record year for software listings in the U.S, reports Bloomberg.
The San Francisco-based company listed the size of the offering as $100 million, a placeholder that will change when terms of the share sale are set.
Samsara was aiming for its valuation in an IPO to exceed its $5.4 billion value in a $400 million funding round in 2020. So far this year, 80 software companies have raised $36 billion in IPOs on U.S. exchanges, eclipsing the previous record of $20 billion in 2020, according to data compiled by Bloomberg. Two of this year’s newly public companies, Playtika Holding Corp. and AppLovin Corp., raised $2 billion or more in their listings.
Samsara’s software and hardware are designed to help businesses run physical operations such as fleet management more efficiently. The company had a net loss of $102 million on revenue of $303 million for the nine months ended Oct. 30, compared with a loss and revenue of $174 million a year earlier, according to its filing.

Paytm loses $5bn in market value as investors question path to profitability

Shares in Indian financial technology company Paytm fell by more than a quarter on its stock market debut, wiping $5bn off its valuation in a rout that underscored investor unease about India’s largest ever IPO, reports The Financial Times. Paytm raised $2.5bn in its initial public offering, giving it a valuation of $20bn, with its largest investors Ant Group and SoftBank selling shares in the company, along with founder Vijay Shekhar Sharma.
The 11-year-old company has sold itself as India’s equivalent to Chinese financial groups such as Ant, with businesses in everything from mobile payments and fantasy sports to gold trading. But the IPO attracted tepid investor interest, with domestic institutions including mutual funds sceptical about its path to profitability and ability to compete with Big Tech competitors such as Google. Shares in Paytm closed 27 per cent lower at Rs1,564 ($21.05) on Thursday. Paytm’s performance over the coming weeks will be watched as a gauge of how far public- market investors will go to back cash-burning tech businesses on the promise of future riches. Paytm was an early mover in mobile payments but has lost market share to foreign competitors including Google and Flipkart, the Indian ecommerce company owned by Walmart. Its more recent forays into new business areas have yet to pay off.