Mainland firms Bawang International and 361? International said they will kick off the roadshows for their initial public offerings today, aiming to raise a combined HK$4 billion to help their expansion to capitalise on the country's rising domestic consumption. Bawang, a herbal shampoo maker aiming for a US$250 million public flotation in Hong Kong, said it would diversify into the herbal skin-care products business in the second half of this year, targeting mid- to high-end market. The Guangdong-based company is selling shares at prices representing 15 to 18 times earnings in 2009, lower than fund managers' expectation, market sources said. 'Bawang's strategy is to bank on our expertise in Chinese herbs to develop various kinds of consumer hygiene products under multiple brands,' chairman Chen Qiyuan, whose family members have practiced Chinese traditional medicine, said. Morgan Stanley and HSBC are the bookrunners of the offering. Meanwhile, 361? a sportswear retailer, is targeting to raise up to HK$2.18 billion by selling 500 million shares at HK$3.15 to HK$4.35 each. The prices represent 10 to 13.9 times earnings in 2009, according to market sources. They said 361? had forecast 550 million yuan (HK$621.50 million) in net profit for the year to June, up 207 per cent from 179 million yuan in 2008. Merrill Lynch and CCB International are arranging the share sale. Fujian-based 361? is one of the top five homegrown sportswear makers. Three others have listed in Hong Kong - Li Ning, Anta Sports Products and Xtep International Holdings. The fourth one China Hongxing Sports is listed in Singapore. Shares in Li Ning are trading at 23.61 times forecast earnings. Anta and Xtep have estimated price-earnings ratio of 17.6 and 12.36, respectively. 361?hopes to use the proceeds from the offer to fund expansion to take its total number of outlets to more than 7,000 by the end of next year, sources said. Ding Wuhao, the president and executive director of 361? said it currently has nearly 6,000 points of sale, mainly in the second and third-tier cities on the mainland. 'We aim to expand our presence and penetration in first-tier cities and at the same time improve store efficiency,' Mr Ding told the South China Morning Post.