Listing candidate China Ting Group plans to substantially increase its chain of mainland retail stores from 292 currently to 470 in 2007 as part of a major expansion plan to be funded by its $1 billion Hong Kong initial public offering. The mainland silk apparel company also aims to increase its annual garment production capacity to 27 million garments by 2008 from 17 million at present, said chief executive Ting Hungyi. It will open two new factories - one next year in Hangzhou with an annual production capacity of two million silk garments and a second in 2008 with annual production capacity of six million garments. As part of the retail store expansion, 15 outlets will sell home textile products by US brand Burlington House from which it obtained exclusive sales and distribution rights for the mainland last month. Mr Ting made the announcement at the company's headquarters in Hangzhou, Zhejiang province at the weekend. China Ting, which delayed its IPO last week, plans to issue 500 million new shares in mid-December, according to market sources. The offer price will range from $1.80 to $2.20 per share, equivalent to a price-earnings ratio of 9.71 to 11.86, in line with garment manufacturers such as brassiere maker Top Form International which has a price-earnings ratio of 11.18. By comparison, Texwinca Holdings, whose business is 40 per cent retail and 57 per cent textile manufacturing, has a price-earnings ratio of 16.56. Ports Design, predominantly a fashion retailer, has a much higher ratio of 33.98. 'We renegotiated our share price with BNP Paribas Peregrine to a more realistic level in line with market prices,' said Mr Ting. His statement confirmed reports that the company was to offer its shares at a discount to Texwinca. BNP Paribas Peregrine is the bookrunner, lead manager, global co-ordinator and sponsor of the IPO of China Ting and Shenzhou International Group Holdings, a knitwear manufacturer also based in Zhejiang. Like China Ting, Shenzhou delayed its initial public offering and lowered its planned offer price. 'The delay in our IPO is not due to market conditions which don't affect us,' said Mr Ting, who founded the firm with his brothers in 1992. About 80 per cent of revenue comes from the manufacture and export of silk garments to the US but 98 per cent of China Ting's silk garments are not under US quota.