ATHLETIC shoes maker KTP Holdings is to float its shares on the local stock exchange in early December to raise more than $300 million. Chairman Patrick Tang Kim-kwan said that the purpose of seeking a listing was to finance the company's production in China. The company is an original equipment manufacturer of athletic footwear for established brands, including Reebook, Adidas, Avia, New Balance, LA Gear and Converse. KTP's profits increased 7.5 times from 1990 to this year, while its turnover rose about 3.5 times during the same period. Its annual production is about 14 million pairs of shoes, but it is targeting about 20 million pairs by the end of next year. Mr Tang disclosed that the company was to invest more than $100 million to build a production complex in Dongguan, China. The first phase of construction would be completed in January next year. ''Part of the proceeds of the new issue will finance the above project,'' he said. About 70 per cent of its products are exported to the US, with the rest going to Europe, South America and the Middle East. Currently, there are three main production bases in China, which account for 65 per cent of the company's production. The rest comes from its plants in Indonesia. However, the company plans to diversify its production base to avoid being affected by any possible trade disputes between China and the US. KTP would like to lower its production capacity in China to 55 per cent in order to reduce its exposure to disputes. Since last year, the US has decided to release a ''hit list'' of Chinese products liable for tariffs under Section 301, with athletic footwear one of the targets. The company is conducting a feasibility study to set up a joint venture in Vietnam. The total investment would be about US$10 million, of which the company will account for 60 per cent, according to Mr Tang. Once the US lifts its embargo on Vietnam, it is believed that the country can become a serious low-cost production base. However, Mr Tang said that the company was seeking to expand in the European market by capitalising on trading benefits accorded to Vietnam. He added that the company would diversify into retail business and produce products under its own brands, but it would be a long-term strategy.