Shangdong Linglong Tyre, one of China’s largest tire makers, passed China Securities Regulatory Commission’s (CSRC) IPO review on 13 Jan.
It is the second time for Linglong Tyre to participate in CSRC’s IPO review. The first review was held on 16 Dec. 2015, but was failed.
CSRC raised up 4 related questions to Linglong Tyre in IPO Reviewon 13th 2016, mainly concerned about effection of anti-dumping investigations and anti-dumping duties from US, Brazil, Argentina, South Africa, Mexico and India collected on Chinese tyres.
The initial public offering shares of Linglong Tyres are no more than 2 million shares, and expected to raise funds for 2.585 billion yuan, including 1.785 billion yuan for an annual output of 10 million units/year high performance radial tire technology transformation project and 8 billion yuan for additional liquidity.
According to CRIA official website news, Linglong tires technological transformation project includes 200 million units/ years of radial tyre plant relocation; expanding its ultra low -section and anti-slippery low noise radial tire production capacity to 800 million units / year.
Analysts said that the implementation of these projects will help increase the proportion of high-end products.
According to Linglong’s strategy plan, by the end of 2020, Linglong Tyre will reach 90 million units/year of tire production. In future, Linglong Tyre will eye on internationalization and accelerate implementation of "3 + 3 strategy", developing Zhaoyuan, Dezhou andLiuzhouthree manufacture bases; its Thai companies expected to achieve three manufactures base in all.
