Discount international call operator City Telecom (Hong Kong), known as CTI, says its plans to raise about $180 million through its initial public offering which gets underway today. About 100 million new shares, representing 25 per cent of the company, are on offer at $1.80 each, valuing the company at $720 million. The company has forecast an attributable profit for the year to the end of August of at least $80 million, giving the stock a fully diluted price-earnings ratio of 8.22 times. All the shares are to be sold to the public. The offer opens today and closes on Friday, with dealing in the shares expected to begin on August 4. Citicorp International is sponsor and lead manager for the issue. Chairman Ricky Wong, who is also the company's main shareholder, said after deduction of related expenses the sale would raise $165 million. Of this, $30 million will be used to purchase premises in Hong Kong to house a permanent switching centre, $40 million will be put into upgrading its network infrastructure, $10 million will go into research and development and the rest will be used for working capital. The company has 353,000 subscribers, of which 15,000 are corporate customers. CTI is debt free and at the end of May had fixed assets of $24 million and total assets of $251 million.