Triangle to upgrade PCR and TBR production with IPO funds
Following yesterday’s confirmation that Triangle is going ahead with the initial public offering (IPO) on the Shanghai stock exchange the company planned last year, the company has revealed a number of other key details.
The IPO is set to take place on 9 September, when the company will issue up to 200 million shares. The estimated issue price per share is 20 yuan or £2.28 (2.66 euros; US$3.01). This values the offering at around 4 billion yuan or £456.429 million (531.429 million euros; $602.366 million).
According to the company, the money will be used to fund a “truck and bus radial tyre transfer and upgrade project”, a project which pertains to an annual capacity of 2 million units. About 2.5 billion yuan of the is expected to be spent on this
The money will also be used to fund a second upgrade – the so-called “high-performance passenger-car radial tyre transformation and upgrade project in Nanhai New District (which relates to an annual capacity of 8 million units) will require total project investment of about 2.7858 billion yuan in total.
Owing to the fact that the two projects total around 5.3 billion yuan of investment, either Triangle expects to raise more than the estimated issue price per share would suggest, or the firm is planning to fund part of the investment itself.