VICTOR Lo Chung-wing's heart is in Hong Kong, much of his future business is in China, but two of his public firms are quoted in Singapore. From November 17, make that three. That is when trading is due to start in Singapore in shares of GPE Industries, another spin-off of the Hong Kong-listed Gold Peak Industries (Holdings), he controls. In his third money-raising expedition to Singapore in four years, Mr Lo yesterday launched the prospectus for the GPE float. He is raising US$22.5 million through the sale of 50 million shares in the car and home electronics group. The issue, led by Standard Chartered Merchant Bank Asia and the Bank of East Asia, is in two tranches - a public offer of 15 million shares at 45 US cents a share, and a placing of 35 million shares at the same price. The key to the Singapore launching pad is in the valuation. The offer price places them on a historic price earnings ratio of 10.2 times, and a prospective of 9.7 times, given that profits in 1996 are expected to rise to HK$61 million from HK$51 million, confirming an average 37 per cent post-tax climb in six years. That, said GPE chairman Mr Lo, was a more handsome valuation than he could hope for in Hong Kong, where manufacturing firms like his did not get the same respect as property-based firms. He feels GPE would be lucky to command between five and seven times earnings in Hong Kong, where his Gold Peak flagship trades on 6.6 times historic earnings. In Singapore his Clipseal group is valued at 12.3 times, and GP Batteries, 15.6 times, suggesting that GPE is priced softly to attract investors. Even so Mr Lo is happy at the cost of the cash being raised through the flotation at the issue price, because he said he could invest at a rate competitive with Taiwanese and Korean rivals. He does not feel the market will fade after initial interest, and once an initial premium over the flotation prices has been achieved. 'I'm very happy with the after-market and the liquidity that the other two companies enjoy in Singapore, even though local investors are a bit hesitant because the stocks are quoted in US dollars,' he said. To those who would like to see Hong Kong's stock market get deeper and wider from the inclusion of more technology stocks, the step by GPE to use Singapore again will disappoint. While not at the very edge of technology the firm is at the quality end of the in-car entertainment market, manufacturing for names like Kef and Clarion. Besides putting a digital orchestra in your Mercedes, Mr Lo will help you to navigate around cities using CD-ROM based navigators, and once home, provide you with low cost, high quality surround sound in-house cinema systems. The China market - which accounts for 1.2 per cent of turnover by subsidiaries - is to be expanded through the construction of a US$2.7 million factory in Dongguan. If GPE's joint ventures are included, the turnover contribution from the mainland and Hong Kong soars to 21 per cent. Another US$8 million is earmarked for more machinery and equipment, and R&D, marketing and working capital take the rest.