Zhongce Rubber set to list shares on Shanghai Stock Exchange

Shanghai, China – Zhongce Rubber (ZC Rubber), China’s largest tire manufacturer, is set to launch an A-share offering on the Shanghai Stock Exchange (SSE) on 23 May, according to a prospectus published 15 May.

The group will issue 87.45 million shares, representing 10% of its post-issuance share capital, with the aim of raising Yuan 4.85 billion (€596 million).

As previously reported by ERJ, proceeds from the offering, after deducting issuance expenses, will be allocated to five major tire-related projects in China and Thailand.

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 an earlier SSE filing in February, 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.