Main-board listing candidate Comba Telecom Systems Holdings will launch its $425 million initial public offering (IPO) today. The mainland wireless coverage solutions provider said yesterday it would offer 200 million shares - 20 million for Hong Kong retail investors and the rest for international placement - at $1.55 to $2.125 each. The offer would represent 25 per cent of the enlarged company's share capital. Comba Telecom - whose products include repeaters and antennas to mobile carriers, as well as project management and installation - said it would use some of the IPO proceeds to expand its sales network and market coverage. 'We have already taken our first step of penetrating into the overseas market by setting up an office in Singapore. This office will be serving Southeast Asia and India, which have an aggregate population of 1.5 billion and no local competitors at present,' said Comba chairman and managing director Fok Tung-ling. 'The major rivals we expect are companies from the United States and Europe, but we have an advantage by being a local company.' Mr Fok said the Sars outbreak in the mainland had had only a temporary effect on Comba. 'Our business in Beijing was slightly affected in May, but it had already recovered in June. Other areas were not affected at all,' he said. 'We are confident that we will be able to make up for the lost business over the rest of this year.' Comba's financial statements showed negative cash flow over the first four months this year, but chief financial officer Clement Chan said this was due to seasonal factors experienced throughout the industry. He said he expected overall cash flow to be positive this year. The company said it had developed a close relationship with mainland cellular duopoly China Mobile and China Unicom, which were its two largest customers.