China’s Largest Tiremaker ZC Rubber Weighs $1 Billion Shanghai IPO

(Bloomberg) -- Zhongce Rubber Group Co., China’s largest tiremaker, is considering raising as much as $1 billion in an initial public offering in Shanghai, according to people familiar with the matter.

ZC Rubber, as the Hangzhou-based company is known, has started its tutorial for a first-time share sale, according to an October filing. The prospective A-share listing, which could take place as soon as this year, could value the business at $4 billion to $5 billion, the people said, asking not to be identified because the matter is private.

The company makes tires used in vehicles including trucks, passenger cars, agricultural, bicycles and motorcycles, according to its website. Its revenues reached about $3.9 billion in 2020. Chinese conglomerate GreatStar Group is ZC Rubber’s controlling shareholder. 

Considerations are ongoing and details such as size, venue and timing could still change, the people said. Representatives for ZC Rubber and GreatStar didn’t immediately respond to requests for comment.

Founded in 1958, ZC Rubber has a presence in more than 160 countries and regions globally. Its brands include Westlake, Goodride, Chaoyang, Arisun and Trazano. The company has expanded both organically and via acquisitions in recent years, including the purchase of Tianjin United Tire & Rubber International Co. for an undisclosed amount in March.

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With assistance from Bloomberg