Xian Haitian Antenna Technologies is hoping to cash in on the market rally and recent enthusiasm for China concept stocks by selling up to $111.6 million worth of shares on the Growth Enterprise Market. The Xian-based antenna maker yesterday received in principle approval from Hong Kong Exchanges and Clearing for its initial public offering (IPO), scheduled to take place later this month. Brokers said investors had shown strong interest in recent IPOs but that they were only interested in offerings with low price-to-earnings ratios. 'After the strong rally in the broader market, most stocks are getting very expensive,' said UOB-Kay Hian Hong Kong director Steven Leung Wai-yuen. 'Retail investors and fund managers are looking for cheap IPOs to enjoy short-term gains.' He said recent IPOs had been performing well because of the strong liquidity in the market, especially with foreign funds seeking investment opportunities in China concept stocks. 'Investors believe companies doing business in China will benefit from continued strong economic growth and may further gain from potential yuan appreciation if they receive most of their revenue in yuan,' Mr Leung said. Banking sources said investors had shown strong initial interest in Xian Haitian's pending share offering after the strong stock performance of recent IPOs, together with hopes that the antenna maker will benefit from mainland mobile carriers' huge investments in next generation mobile networks. Xian Haitian, which makes antennas for mobile network base stations, is planning to sell 161.76 million H shares to investors at a price range of 55 to 69 cents, tapping between $88.97 million and $111.6 million from investors. The firm has appointed Core Pacific-Yamaichi as its listing sponsor.