Xinyu Hengdeli Holdings, the largest watch retailer on the mainland, is raising as much as HK$887.76 million from the sale of mostly new shares.
The Shanghai-based company is selling 236 million new shares with the option to sell a further 88 million shares, half of which would be existing ones, according to a term sheet sent to investors.
The shares were marketed at HK$2.62 to HK$2.74 each, representing a 6.16 to 10.27 per cent discount to the closing price of HK$2.92 yesterday.
The stock has risen 143.33 per cent this year, almost six times the 24.36 per cent gain in the benchmark Hang Seng Index.
JP Morgan and Guotai Junan Securities arranged the deal.
Proceeds from the deal will be spent on outlet expansion, potential acquisitions and general capital purposes, the term sheet shows.