Hengan International Group, which makes sanitary napkins and disposable baby diapers, is expected to see a strong debut on the stock exchange tomorrow, amid improved investment sentiment. Brokers said the banks' reduction today of a quarter of a percentage point in interest rates would boost buying interest. 'It's really run into luck on the unexpected interest rate cut,' one broker said. Trumpeting the recession-proof concept of its products and the potential of its key market - the mainland - Hengan has lured international funds including one controlled by United States billionaire George Soros as shareholders. Hengan sold 225 million shares, or 90 per cent of the shares on offer, through a placement to international investors. The remaining 25 million shares were sold to the public in Hong Kong. The international tranche of shares was subscribed by about 13 times. The public tranche was 36.5 times subscribed, the heaviest this year. Celestial Asia Securities Holdings research director Josephine Hui Suet-ming said: 'The response of the public tranche is comparatively favourable in the wake of the availability of funding in the market.' Some brokerages including Celestial had not offered financing for their clients subscribing Hengan shares due to tight funding, she said. Brokers said investors who had not borrowed funds to buy the shares would only have their investment cost covered if Hengan shares traded at $2.90. They cited as another example Pacific Challenge Securities, which charged an interest rate of 12.5 per cent (or three percentage points above the prime) for subscription financing. They said the break-even price would be $3. 'I think Hengan's reasonable value is $3,' Ms Hui said. On Friday, the grey market price of Hengan varied between $3.02 and $3.20. Owing to the issue's warm response, China Everbright Securities said it had applied to issue an extra 10 million new Hengan shares. This will bring an additional $28 million in gross proceeds, raising the proceeds to $728 million.