Key investors to take more than 5pc stake ahead of HK$1.6b IPO Listing candidate Shandong-based Qunxing Paper, the mainland's biggest decorative base paper maker which aims to raise HK$1.6 billion in a Hong Kong initial public offering later this month, has brought in Cheung Kong Holdings and New World Development as its strategic investors, according to sources close to the company. The tie-ups between Li Ka-shing's Cheung Kong and Cheng Yiu-tong's New World come as the two conglomerates, which are heavily involved in construction works, see good growth potential in Qunxing, which makes papers for laminated boards. The sources did not indicate the stakes that the two companies intend to take in Qunxing, but suggested that the two local tycoons along with a few other strategic investors will take more than 5 per cent of the stake. Qunxing, which will start its roadshow today for institutional investors, will launch the retail tranche of the offer next week, and listing of the shares are expected at the end of the month. Qunxing plans to boost production capacity by 88 per cent in 2009 to 320,000 tonnes, according to chairman Zhu Yuguo. Hidili Industry International Development, a Sichuan-based coal and coking coal producer which hopes to raise as much as HK$4.1 billion, said its international roadshow had received orders for 10 times more shares than it was offering. The retail tranche, which accounts for 10 per cent of the share offering, will open for subscription from today until Thursday. Hidili is offering 600 million shares with an option to increase the offer by an additional 90 million shares depending on demand. The issue was launched at an indicative price range of HK$5.05 to HK$6.65. In response to an advertisement published last week offering for sale 20 million shares of Hidili, ahead of the launch of the initial public offering, Hidili chairman Xian Yang said yesterday that his company had no connection with the advertisement. A Hidili spokeswoman said that after communicating with UBS and regulators, Hidili would 'take action' today in response to the advertisement, which would involve the issuance of an announcement. She did not elaborate. Meanwhile, Sino-Ocean Land, a property unit of Hong Kong-listed Cosco International Holdings, has set the price range for its initial public offering to raise as much as HK$13.7 billion. Sino-Ocean, which had most of its business focus in Beijing and Pan-Bohai Rim, was selling shares at HK$6.45 to HK$7.70 each, or 19 to 23 times forecast earnings for the year, market sources said. The developer is offering 1.55 billion shares, of which 82 per cent would be new shares. The roadshow will take place today, and retail subscription will take place from Friday to Wednesday next week. Trading is expected to begin on September 28. Goldman Sachs, Morgan Stanley and BOC International are arranging the offering. Meanwhile, the roadshows for the initial public offering of Xinjiang Xin Xin Mining, the second-largest nickel producer in the mainland that aims to raise US$350 million, were scheduled at the end of next week, while the retail tranche would run in the first week of next month, and trading of the shares was expected in mid-October, sources said. Global Sweetener Holdings, a unit of Hong Kong-listed Global Bio-Chen that aims to raise HK$612 million in an initial public offering this month, will run the retail tranche of its offering between today and Thursday and the listing of the shares is expected to be on September 20. Global Sweetener aimed to sell shares at 10 to 13 times its 2006 earnings and 7.9 to 10.2 times this year's earnings.