Man Wah Holdings, a sofa manufacturer and retailer from the mainland, is raising up to HK$2.847 billion to boost its production capacity and develop 1,000 new mainland stores.
The initial public offering has been priced at an indicative range of HK$8.50 to HK$11.80 per share and the target listing date is March 30.
The retailer and manufacturer of 'Cheers' recliner sofas, which have such features as extending footrests and swivel functions, has a sizeable market share in the United States and Europe.
While many US and European retailers suffered during the financial slump, Man Wah's revenue rose 51.2 per cent in the US and 9.7 per cent in Europe for the financial year that ended on March 31 last year.
Stephen Allen Barr, executive director and president of Man Wah USA, attributed the substantial sales growth to the appeal of sofas to women, who tended to like the design.
'A lot of Americans have recliner chairs, you might not have seen then, but they are dated furniture, and women find them really ugly,' Barr said. 'Guys like it, but women don't - and in the US, women decide what goes in the house.'
'What we have done with the recliner sofas in the US is like if MacDonald's has captured the dim sum market in Hong Kong.'