PE-backed Linglong Tyre raises $388m in Shanghai IPO

The firm initially filed with the Chinese securities regulator for a domestic listing in May 2014 - more than two years before its stock began trading in Shanghai on July 6. Linglong Tyre issued 200 million shares at RMB12.98 apiece. The stock gained as much as 44% during its first day of trading, finally closing at RMB18.69 per share.

Linglong Tyre was founded in 1975. It manufactures and distributes a variety of car tires used in trucks, buses and other passenger vehicles. The company owns three manufacturing facilities in China and Thailand, and several R&D centers in the US and Europe. Currently it exports products to about 180 countries and regions, with a view to distributing 90 million units annually by 2020.

In 2010, the company raised approximately $15 million in a round led by Legend, with participation from Hony, Siguler Guff, Haitong Capital Investment and Oriza Holdings. None of these investors sold shares in the public offering, although their holdings have been diluted following the issuance of new shares. According to latest filing, Legend has 3.98%, Hony has 3.15%, and the other three investors own 1.58%, 1.16% and 0.93%, respectively.

Revenue came to RMB8.7 billion last year, down from RMB10.27 billion in 2014. Net profit was down from RMB834 million in 2014 to RMB677 million last year. 

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• Topics
• Greater China
• IPO
• Industrials
• China
• manufacturing
• Legend Capital
• Hony Capital
• Siguler Guff & Co.
• Exit