Linglong announces Hong Kong IPO plans to partially fund €1bn Brazil tire project

Shanghai, China – Shandong Linglong Tire has submitted its application to the Hong Kong Stock Exchange for an H-share listing, according to a 30 June filing with Shanghai Stock Exchange (SSE).

In its SSE documents, Linglong outlined plans to use the proceeds to fund production expansion, research and development, marketing initiatives, and general working capital. The total amount to be raised was not disclosed.

According to the filing, the company plans to allocate a significant portion of the funds to expanding overall production capacity.

This includes building and upgrading global manufacturing bases to strengthen its international presence, modernise factories, and meet rising market demand.

In particular, part of the investment will go toward the first phase of a new production base in Brazil, with planned capacity for six million passenger car and light truck tires.

In April, Linglong unveiled ‘investment intentions’ for the €1-billion greenfield tire plant in Brazil with an overall capacity to produce 14.7 million high-performance radial tires. (ERJ report)

Linglong also aims to modernise existing factories through smart manufacturing upgrades, such as advanced logistics equipment, automated storage systems, and improved IT systems for production and operations.

Another portion of the funds is earmarked for enhancing independent R&D and innovation capabilities.

The group plans to invest in new product development, technological improvements, and major research projects supporting "high-quality, high-performance low-carbon tires."

As part of this, Linglong expects to recruit "200 top R&D professionals" over the next five years.

Furthermore, Linglong said it will also invest in expanding its global marketing strategy to strengthen brand influence.

This includes sponsorship of international sports events and football clubs, growing its network of authorised retail and flagship stores, and recruiting 200 sales and marketing professionals over five years.

Part of the proceeds will also be used for general corporate purposes and working capital.

Linglong noted in the filing that the use of proceeds will align with market conditions and strategic priorities, with allocations subject to change depending on the final offering size.