Ningbo Tip Rubber Technology (605255) to start trading on the Shanghai Stock Exchange - Main Board on August 25, at a public offering price of RMB 12.66 per share, raising RMB 0.42 bln. Its initial listing shares account for 25% of total outstanding shares. The company’s initial price-to-earning ratio (PE) stands at 22.99.
Earlier, Ningbo Tip Rubber Technology said its IPO was 3,944 times oversubscribed. Since 2019 to date, A-shares IPOs achieved median oversubscription of 2,373 times and the highest at 8,375 times. We expect the IPO to hit limit of 44% increment in its first day of listing. For subsequent 30-day trading the performances can be obtained from our China IPO Weekly.
Ningbo Tip Rubber Technology Co Ltd is a China-based company mainly engaged in the research, development, production and sales of automotive polymer fluid piping systems and sealing system parts and assemblies. The Company provides rubber hoses and assembly products for automobile manufacturers and their first-tier suppliers. The Company's products are divided into five categories: automotive engine systems and parts, body systems and parts, chassis systems and parts, electrical and electronic equipment and general parts, including radiator tubes, turbocharger hoses, crankcase ventilation system, oil cooling pipe, vacuum solenoid valve pipe, automobile fuel system hose and assembly, automobile air conditioning system hose and assembly, automobile power steering system hose and assembly, other body accessory system hoses, sealing tape, dustproof and shock absorbers, etc. The Company operates its businesses within the domestic market and to overseas markets.
In financial year 2019, Ningbo Tip Rubber Technology garnered a total revenue of RMB 344.56 mln, down 21% YoY. In terms of net income, it achieved RMB 89 mln, down 26% YoY. Accordingly, return on equity (ROE) and return on asset (ROA) stood at 16.52% and 14.63% respectively, earning per share (EPS) of 0.78 RMB.
