ZC Rubber shareholder announces progress in IPO plans

Beijing – A major shareholder in Zhongce Rubber Group (ZC Rubber) has disclosed that the tire maker has progressed plans for an initial public offering (IPO) of its stock.

In an announcement 15 Dec, shareholder Hangcha Group said it had been informed that ZC Rubber’s application for offering of A shares had been accepted by the China Securities Regulatory Commission (CSRC).

“All the materials of the application are complete and in compliance with the statutory form, and it is decided to accept it and review it according to law,” stated Hangcha.

Established in 1992, Zhongce Rubber is China’s biggest tire maker and has a total share capital of 787,037,038 shares. Hangcha indirectly holds 11.44% of ZC shares.

According to Hangcha, whether ZC Rubber’s IPO can finally be approved by the CSRC is still uncertain.

If successful, ZC will be the biggest A-listed Chinese tire maker.

In a written statement provided 21 Dec to ERJ , ZC Rubber said the information is currently “from a third party”.

“We have not received instructions from the secretary office of the board of directors, so we cannot verify the authenticity of this information,” it added.

Other major ZC Rubber shareholders, Great Star Technology and Red Avenue New Materials - with 11.44% and 8.92% shares in the company respectively - have also issued similar statements indicating that the tire group has advanced its IPO plans.

With sales of over $4.5 billion (€4.2 billion) in 2021, ZC Rubber ranks 8th in the ERJ global tire ranking.