Shaoxing-based Zhejiang Glass plans to raise at least HK$503 million from its initial public offering to upgrade its facilities. The glass manufacturer has set the offer price for 170 million new shares at HK$2.96 per share, which is at the top of its indicative price range. Zhejiang Glass is forecasting a net profit of at least 208 million yuan (HK$194 million) for this financial year, finance department manager Tony Chan said. This represents a prospective earnings multiple of 8.45 times. The company could raise an extra HK$75.48 million if it exercises its over-allotment option of 25.5 million additional shares, or 15 per cent of the original offering. 'The deal is comfortably oversubscribed,' said David Dean, head of equity capital markets at Nomura International, which is sponsoring the IPO. Zhejiang Glass is planning to invest HK$228 million of the net proceeds to build five production lines to make tempered glass, laminated glass, insulating glass, coated glass and mirror glass, to augment its two current unprocessed glass production lines. About HK$94 million will be invested in a joint venture with Dynamic Goal Worldwide to make patterned and wired glass. When the Zhejiang Glass shares start trading under the stock symbol '739' on the main board on December 10, the firm will become the first mainland private enterprise to list in Hong Kong as an H share.