China Galaxy Securities is set to include additional bookrunners in its dual listing in Hong Kong and Shanghai that could raise more than US$1 billion as soon as the first quarter of next year. According to people familiar with the situation, the brokerage house is aiming to conclude the first sizeable offering in the first half of next year, possibly as soon as February. "The big-ticket initial public offering is set to test both sponsors and underwriters' ability to sell shares on the back of poor turnover condition and inexpensive valuations," the people said. To avoid a failed offering, bringing in heavyweight investors such as big institutions or Hong Kong business tycoons became very important for the banks, said these people, who asked not to be identified because the plan is private and in the early stages. Based in Beijing, Galaxy Securities will be the third mainland brokerage house to list in Hong Kong after rivals Citic Securities drew US$1.7 billion in October last year and Haitong Securities, the second-largest brokerage by assets after Citic Securities, raised US$1.68 billion in April. Haitong sold its shares at the bottom of the indicative price range amid market volatility and lingering euro-zone debt problems. In 2005, Galaxy Securities received an undisclosed amount of capital from state wealth fund Central Huijin Investment, after a slump in the stock market that caused a wave of bankruptcies among mainland broking firms. Huijin has invested in nine mainland brokerages. Galaxy Securities' net profit last year plunged 60 per cent to 2 billion yuan (HK$2.46 billion). The most recent dual listing was New China Life Insurance, the third-largest life insurer by premiums, which raised US$1.9 billion in December last year after selling shares near the bottom of a marketed range. "Apart from ailing market sentiment, technical difficulties such as shares allocation and the gap between A and H shares have weighed on the likelihood of a dual listing," a person familiar with the matter said. The latest attempt comes following recent gains in the equity markets. The Hang Seng Index has gained 13.6 per cent this year while the Shanghai Composite Index is down 3.8 per cent, following its rise to a three-week closing high yesterday. Mainland shares have been bolstered by renewed expectations that Beijing will implement more measures to revive the lacklustre stock markets. Brokerage firms led the gainers yesterday after a state-controlled newspaper said the government would ease limits on their operations. Industrial Securities rallied 10 per cent, while Citic Securities gained 3.2 per cent and Haitong Securities advanced 3.5 per cent.