Global Green Tech Group, a sewage treatment firm, plans to raise as much as US$120 million by selling shares in its cosmetic and skin care product unit, according to a source. The deal is likely to come to the market as early as late September, the source said. Macquarie Securities has been mandated as the sponsor. 'The firm will file a formal application with the Hong Kong stock exchange shortly,' another source said. 'The deal could range from US$80 million to US$120 million, depending on how aggressively the firm values the shares.' Global Green plans to use money raised from the initial public offering to expand its sales network in a move to capture the mainland's retail market boom. It runs 178 cosmetic product outlets in the mainland and 20 counters in Hong Kong and Macau. 'It should be a positive catalyst for [Global Green] as it could unlock the potential value of its fast-growing cosmetic business as well as reaping substantial gain from selling stakes,' said a fund manager at a Japanese asset management firm. Shares of Global Green have soared 293 per cent since the beginning of the year, and now have a market value of about HK$4.1 billion. The firm reported an 8.7 per cent increase in net profit to HK$271 million for last year on a 6 per cent gain in turnover to HK$846 million. Turnover of its cosmetics and skincare products, which are mostly marketed under the Marjorie Bertagne brand, increased 16.34 per cent to HK$409 million last year and accounted for 48.41 per cent of the firm's total sales. Operating profit rose to HK$210.4 million. 'The rapid economic development in the mainland has boosted people's consumption power. The demand for high quality cosmetics and skin care products in the country continued to surge,' the company said in its annual earning report in April. 'With a manufacturing base in China, we are capable of developing the finest cosmetics and skin care products which enable us to penetrate sophisticated cosmetics markets such as Europe and North America,' it said. Apart from the cosmetic and skincare business, Global Green is also developing the recycling business in a bid to diversify its revenue stream. The firm has been granted a certificate and licence by the German government, which also agreed to subsidise its waste-tyre imports from the country. Global Green is also arranging a HK$330 million loan facility through a group of six to seven banks, according to a local banker.