Evergrande Said to Mull Hong Kong IPO for Bottled Water Unit (1)

China Evergrande Group is considering an initial public offering in Hong Kong for its bottled water business, people with knowledge of the matter said, as the country’s most indebted real estate developer seeks new sources of funding.

The company is holding exploratory discussions with investment banks on a separate listing for Evergrande Spring, said the people, asking not to be identified as the information is private. A potential IPO could raise several hundred million dollars and take place next year, the people said.

Shenzhen-based Evergrande has been selling equity in non-property assets and accelerating property sales to reduce leverage, yet ...