Mainland property developer Zhong Hua Land Holdings said yesterday it is to raise $289 million through its initial public offering. The company will sell 150 million new shares representing about 25 per cent of its issued share capital at $2.08 per share. About two-thirds of the cash raised would be devoted to completing the company's 360,000 square-metre Harbour View Square residential project in Guangzhou, while the remainder would be used for future projects, company chairman Ho Tsam-hung said. 'We are marketing phase two of the Harbour View Square right now, which is about 80 per cent sold,' Mr Ho said. The flats - most of which were bought by local buyers - are priced at about 1,100 yuan (about HK$1,012) per square foot. Phase three and four are expected to be completed in 1999 and 2000. In Chongqing, Zhong Hua's 51,000 square-metre Gang Yu Square shopping centre is about one-third leased at between 9.30 and 18.50 yuan per square foot per month rental. 'We plan to lease the shopping mall initially and then cash in by selling it once we have built up its market share,' Mr Ho said. Prospective earnings per share are 29.8 cents for the year to December 31, valuing Zhong Hua shares at about seven times earnings. The company said it has entered into two co-operative agreements with the China National Textile Council and the Beijing municipal government-controlled Capital Group giving it the right of first refusal on projects held by the two. Zhong Hua has four projects with about 420,000 square metres of floor space under planning, two in Guangzhou, one in Beijing, and one in Shanghai, although there is no timetable for these projects. Zhong Hua shares will begin trading on October 13.