China Zenix Auto International (ZX)

This company completed an initial public offering (IPO) of its stock in 2010. View articles that reference this company. Recent IPOs:   Globe Specialty Metals   •   LogMeIn   •   Invesco Mortgage Capital   •   Medidata   •   Chemspec

 

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Remi Cossart

China Zenix Auto International (NYSE:ZX) is China's largest manufacturing of commercial wheels in terms of sales volume. The company manufactures its wheels out of facilities based in China and sells them both domestically and internationally. They also operate test centers that have been approved by the People's Republic of China to test roadworthiness.^[1]

Because China Zenix Auto sells wheels used in cars in China, the growth of the country's middle class will impact the company's future. The disposable income of the swelling middle class is able to purchase more expensive items such as cars. While transportation and infrastructure in China remains relatively poor, the desire to own cars remains strong. However, the rising middle class also pushes up wages on which China Zenix Auto relies to produce low priced wheels.^[2]

The company's initial public offering of stock on the NYSE occurred on May 11, 2011. The company offered 12.9M shares each for $6. This was at the low end of the price range of $6-$8. The offering raised a total of $77M. The lead manager of the IPO was Morgan Stanley (MS).^[3]

During the full year 2010, the company reported a total revenue of $485M and its net income $50M. This was a 50% increase in total revenue and a 79% increase in net income.^[4]

1. ↑ ZX F-1/A 2011 PROSPECTUS SUMMARY "Overview" pg 1-2
2. ↑ ZX F-1/A 2011 PROSPECTUS SUMMARY "Our Industry" pg 2-3
3. ↑ Renaissance Capital - IPO Home "China Zenix Auto prices IPO at $6, low end of revised range" 12 May 2011
4. ↑ ZX F-1/A 2011 PROSPECTUS SUMMARY "SUMMARY CONSOLIDATED FINANCIAL DATA" pg 11