TAIWAN shoe manufacturer Prime Success International Group will list on the Hong Kong stock exchange with the issue of 132.75 million shares at $1 each. The shares, which will raise a net $116 million, are being offered at a price-earnings multiple of 5.89 times, based on the forecast earnings per share of 21.37 cents. The company forecasts net profit of at least $90 million for the year ending December. Managing director Chen Hsien-min said although the company's main business operations were in China, they had not been affected by the political differences between the mainland and Taiwan. Howard Gorges, director of sponsor South China Capital, said the company's price-earnings multiple was reasonable, adding that 'new issues tend to come out on lower multiples'. He said Prime Success was different from the five footwear companies listed on the exchange. They were mainly original equipment manufacturing (OEM) businesses, while Prime Success, in addition to its OEM business, manufactured and retailed its own brands. The company will use about $55.2 million from the listing proceeds for expansion, including the construction of a centre at Shanghai. About $30 million will be used to pay debt and $25.8 million will be retained as working capital. Prime Success has regional sales offices in Beijing, Shanghai, Harbin, Shenyang, Chengdu, Fuzhou and Guangzhou, and counters in 36 department stores producing annual sales of $50 million to $70 million. There are also two specialty shops. Sales in China accounted for 22.3 per cent of the company's total turnover last year. Because the group's manufacturing facilities are located in China and its main market is the United States (which accounted for 61.7 per cent of turnover last year), any retaliatory trade action between the two countries will be bound to affect its business. Applications for the shares will close on October 25.