TSINGTAO Brewery plans to raise about $900 million in Hongkong by issuing 317.6 million H shares to the public from Tuesday, sources say. The shares on offer represent 35.29 per cent of the company's enlarged share capital and will be priced at $2.80 a share. However, the total H shares issued would be 38.54 per cent, of which 3.25 per cent would be owned by the company's old shareholders which are based in Hongkong. They are Nam Tung (Macau) Investment, Yien Yieh Commercial Bank (Nominees), China and South Sea Bank (Nominees), and Po Sang Bank. The four each hold 0.8125 per cent of the company. China Development Finance Co (Hongkong) is the issue's lead underwriter. Although Shanghai Petrochemical was expected to have been the first mainland company to list in Hongkong, sources say it is facing some technical problems. The Shanghai firm will launch another presentation for fund managers in Hongkong, following a presentation in Shenzhen held on Tuesday. ''It appears the Stock Exchange of Hongkong is hoping that at least one company of the nine can open a share offer in Hongkong by this month,'' one source said. It would therefore be quite difficult for Shanghai Petrochemical to meet the June deadline, he added. As such, Tsingtao Brewery looks set to have the chance to kick off the China Nine listings. A press conference announcing Tsingtao Brewery's share offer in Hongkong will be held on Monday, with shares open for offer on Tuesday. It is believed that the brewery's A share issue will take place at a later stage. The brewery also plans to offer A shares equivalent to 11.11 per cent of the company to domestic Chinese investors. A significant proportion of the A shares in issue, amounting to 44.42 per cent of the total in issue, would be held by the Qingdao Administration of State-owned Management Bureau. Tsingtao Brewery reported an after-tax profit of 44 million yuan (about HK$59 million at the official rate) last year, 39.65 million yuan in 1991, and 26.81 million yuan in 1990, sources say. Turnover was 739.95 million yuan for last year, 452.14 million in 1991, and 305.12 million yuan in 1990. ''Judging from the trend, its profit can easily triple this year because demand is greater than supply. But again it's difficult to tell because the yuan is falling,'' said one analyst. Sources say the company would have a fully diluted price-earnings ratio of about 18 times, or a weighted average PE of 13 to 13.5 times, assuming the company's A shares were listed in the second half of the year. Forty per cent of the company's debt is in foreign currencies, mostly US dollars. But the brewery would not reveal the actual figures. Tsingtao Brewery yesterday held a presentation which was attended by hundreds of fund managers and analysts.