Linglong Tire to issue 100 million shares for 2 billion yuan funds
On Feb.18, Shandong Linglong Tire announced that the company plans to issue no more than 100 million shares to finance up tp 2 billion yuan.
The company plans to invest 1.4 billion yuan on its Jinmen new project, and left 600 million yuan will be used for replenish floating capitals.
According to Linglong Tire's announcement, the company plans to build up 8 million units of half-steel high performance tire project and 1.2 million units of full-steel high-performace tire project in Jinmen.
In recent three years, Linglong Tire's capacity utilization has been kept at very high level, which restricted the company's production. The company said after completition of Jinmen project, it would break its production bottleneck and fuurther lift its market share in the world.
However, tire industry is a heavy asset industry, which means Linglong Tire needs huge money for investment and operation. In that case, the company decided to retain 600 million yuan used in replenish floating capitals.
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