Shangdong Xiwang Sugar, China's largest glucose powder maker, is scheduled to launch an investor roadshow this week for a Hong Kong initial public offering aimed at raising up to $492 million with a listing planned for the middle of next month. The deal marks the first time CCB International Capital, the wholly owned investment bank unit of China Construction Bank, has acted as a sole sponsor of a Hong Kong IPO. Last month, the unit teamed with CCIC and Morgan Stanley to manage the $62 billion listing of its banking parent. Higher interest rates and jittery equity market conditions have weakened the environment for new share sales, with a number of issuers having scaled back offerings or set prices at the low end of their offered range. Xiwang Sugar will offer 280 million shares, comprising 240 million new shares and 40 million old shares. A greenshoe option allowing a further 42 million shares to be issued is included. After the transaction, controlling stakeholder Shangdong Xiwang Group will hold about 62 per cent of the red chip. Shares are being marketed in a range of $1.70 to $2.05 per share. This represents a forward price-to-earnings ratio from 7.2 to 8.7 this year and from 5.1 to 6.1 next year. Xiwang Sugar posted an after-tax profit of 81 million yuan last year. A substantial part of the proceeds has been earmarked for business expansion. Xiwang Sugar is a subsidiary of Shang Xiwang Group, a leading agricultural product manufacturer that trades and develops biochemical products. The Xiwang Group 's business model and product lines are similar to that of Hong Kong-listed Global Bio-Chem, which trades on an earnings multiple of about 8.4 times. Both firms make corn-based food products such as glucose and corn starch.