Sentury Tire share issue meets 75% of Spain factory costs
Qin Long, seen here with Las Pontes Mayor Valentín González Formoso at the March 2023 signing of an agreement covering the Spain factory, remains Sentury Tire’s controlling shareholder (Photo: Las Pontes Council)
Approximately three-quarters of the funds that Qingdao Sentury Tire Co. Ltd. needs to set up a factory in Spain have been secured through a share issue. On 22 August, the tyre maker informed the Shenzhen Stock Exchange that it had issued 94,307,847 shares to 20 parties at a price of RMB 26.69 (£2.93, US$3.68) per share, raising approximately RMB 2.8 billion (£307.1 million, $386.4 million).
Of the 20 share purchasers, 19 were professional investors. Sentury Tire’s stock closed at RMB 31.9 per share on 23 August and closed today at RMB 31.81.
Following the share issue, the controlling shareholder remains Qin Long, chairman of Sentury Tire. His personal direct shareholding has decreased from 42.25 per cent to 36.89 per cent. At the same time, the share issue has also diluted Qin’s original 7.7 per cent shareholding in Sentury Tire through four other enterprises. According to preliminary figures, after the share issue Qin Long directly and indirectly holds approximately 43.61 per cent of the shares.
The direct shareholding of Lin Wenlong, general manager of Sentury Tire, decreased from 5.96 per cent to 5.2 per cent.
Sentury Tire will invest the funds raised in its factory in Spain. The Spanish plant project requires a total investment of approximately RMB 3.77 billion (£413.5 million, $520.3 million). The tyre maker says it will cover the outstanding RMB 970 million following the share issue with the “company’s own funds”.
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