Electronics manufacturer Sunway International is looking to raise up to $506 million in an initial public offering (IPO), with the stock set to debut on September 3. The firm plans to sell 250 million shares at between $1.26 and $1.76 each, with a greenshoe option to issue an additional 37.5 million shares depending on demand. The initial plan is to place 55 per cent of the shares internationally, 35 per cent in Singapore and 10 per cent in the Hong Kong offering. Sources close to the issue expect the pricing to fall in the middle of the range when it is set on August 20. The proportion of the Hong Kong IPO will increase to 30 per cent if the issue is 15 times oversubscribed and 40 per cent if 50 times oversubscribed. The IPO is being managed by Core Pacific-Yamaichi with subscriptions scheduled to be held from August 24 to 27. Sunway produces electronic consumer products, including calculators and clocks, and components, including liquid crystal displays and quartz crystals. Core Pacific expects the company's net profit to increase 34 per cent for the year to September from $215.9 million previously. A Core Pacific brokerage report said of the company: 'With rising standards of living on the mainland, demand for electronic watches, clocks and calculators will increase.' Sources close to the issue said that the recent downturn in the market could lower the issue price. Corporate financiers said it was sensible to privately place 90 per cent of shares as domestic retail investors had a low appetite for such issues. 'For institutions there is still an appetite for such new issues but for retail investors, it is really not conducive in this market at the moment,' said a head of corporate finance with a brokerage. 'Retail investors are currently more confident about placements of blue-chip companies than new issues.'