(Repeats story filed March 30)
HONG KONG, March 30 (Reuters) - China-based Grandtour Tires plans to raise roughly US$400 million from an initial public offering (IPO) in Hong Kong by the end of June, market sources said on Tuesday.
Grandtour is planning a listing amid a recent cooling of market demand for new offerings from China. Mainland firms hope to raise more than US$22 billion in overseas initial public offerings in 2004.
The fast-growing tyre manufacturer was founded by its Singapore-based parent company GT Group in 1993 and now holds a mainland market share of 12 to 13 percent, making it the largest tyre manufacturer in China, where the auto sector is booming.
The company also exports tyres made in China.
It plans to float 25 percent of its share capital in a deal led by Credit Suisse First Boston , the sources said. A CSFB spokeswoman declined to comment.
GT tyres generated revenue of seven billion yuan (US$845 milion) in 2003, a sharp increase from 2.8 billion yuan in 2001, according to its Web site (www.giti.com.cn).
It has boosted growth by acquiring state-owned tyre-makers in China, one source said.
The firm, which submitted its Hong Kong IPO application earlier this month, plans to use proceeds of the flotation for future acquisitions and to pay down debt.
Foreign-investor infatuation with China IPOs was punctured when the country's biggest chipmaker, Semiconductor Manufacturing International Corp , ended its debut day earlier this month below the offer price in its US$1.8 billion listing.
SMIC's shares remain below their IPO price.
(US$1=HK$7.8=8.28 yuan)