GiTi Tire plans IPO this month - report

ERJ staff report (DS)

Hong Kong, China -- GiTi Tire has resurrected plans for an initial public share offering worth around HK$500 million (Euro 50 million), according to a report from Reuters. ERJ sought clarification from GiTi's headquarters in Singapore, but the company had not responded by press time.

Reuters quoted un-named sources close to the deal saying, "Giti Tire planned to seek Hong Kong listing committee approval in the coming two weeks, aiming to list shares in April, one of the sources said on Monday."

Reuters said the IPO will be sponsored by BofA Merril Lynch and Credit Suisse.

GiTi was founded in 2003 and had initially planned an IPO for 2004. Meanwhile the company bought and built seven tyre plants in China to become the largest domestic company. GiTi is based in Singapore and is linked to Gadjah Tunggal in Indonesia. The company revived plans for an IPO in 2008, but these were once more postponed due to the financial crisis.

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News story from Reuters