China Paradise Electronics Retail's major shareholders hope to raise US$156 million by selling 369.2 million old shares, after the first six-month lock-up period ended in the middle of this month, according to sources. They said that Morgan Stanley Private Equity Asia, CDH China Fund, Tong Ley and chairman Chen Xiao's Retail Management aimed to raise US$153 million to US$156 million by selling stock at $3.225 to $3.275 a share - a discount of 4.38 per cent to 5.84 per cent on the company's closing price yesterday. Traders said the shares to be sold, which represent about 17 per cent of the total shares outstanding, will significantly increase the counter's free-float, depressing the retailer's share price. China Paradise is a mainland consumer electronics chain operator. Since it started trading in October, the share price has surged 91.11 per cent to a record high of $4.30 on Friday. The gain was trimmed yesterday with a 20.34 per cent slump to $3.425 as $196.54 million shares changed hands. Morgan Stanley is the sole bookrunner of the transaction. Meanwhile, Norstar Founders Group aims to raise up to $650.25 million through a top-up share placement to finance capacity expansion, according to sources. The mainland industrial company is planning to sell 170 million shares at an offer price of $3.625 to $3.825, a discount of 3.16 per cent to 8.23 per cent on its last trading price of $3.95. The company and key shareholders are subject to a 90-day lock-up period after the placement. Century Founders Group is the facilitating shareholder. Norstar is a maker of car spare parts and construction decorative-hardware products. Trading in Norstar was suspended yesterday afternoon pending the release of an announcement in relation to a proposed placing of existing shares and subscription of new shares. HSBC is the sole bookrunner.