ZC Rubber gains approval for Shanghai Stock Exchange listing

Shanghai, China – Shanghai Stock Exchange (SSE) has approved the listing of Zhongce Rubber Group (ZC Rubber) during a recent listing review committee meeting.

The committee announced 13 Feb that ZC Rubber meets the issuance conditions, listing conditions and information disclosure requirements for an initial public offering (IPO).

According to its latest IPO prospectus, submitted 7 Feb, ZC Rubber aims to issue no more than 8,744,8560 shares to raise Yuan4.85 billion (€630 million).

China's largest tire maker aims to invest the funds in five major tire projects after deducting the corresponding issuance costs from the funds raised.

This will include Yuan1.7 billion for its ‘Chaoyang high-performance radial tire green 5G digital factory project’, which will cover more than half of the overall investment cost of Yuan3.2 billion.

Furthermore, Yuan850 million will be allocated to a 2.5-million-unit all-steel radial truck tire production line project in Qingquan, which is currently undergoing a Yuan2 billion expansion programme.

Another Yuan600 million has been earmarked for the ‘renovation and expansion’ of ZC Rubber Jiande’s Chunqiu plant to add a 2.5-million-unit all-steel truck tire production line.

The Chinese group also intends to allocate Yuan850 million to a Zhongce Rubber (Tianjin) project to produce ‘high-end green engineering tires’.

In Thailand, the group aims to invest Yuan600 million to add production capacity for 7 million high-performance semi-steel radial passenger car tires.

According to its latest SSE filing, ZC Rubber generated revenue of Yuan35.1 billion in 2023, and Yuan18.4 billion during the first half of 2024.

In terms of earnings, the group posted a net profit of Yuan2.6 billion in 2023 and nearly matched the gains in the first half of 2024 at Yuan2.54 billion.