×

China Huarong sets HK IPO range, aims to raise up to $2.8B

A panel outside a bank displays the morning trading of CSI300 index, the largest listed companies in Shanghai and Shenzhen, and the Shanghai Composite Index, in Hong Kong, China, on July 9, 2015.
Bobby Yip | Reuters
A panel outside a bank displays the morning trading of CSI300 index, the largest listed companies in Shanghai and Shenzhen, and the Shanghai Composite Index, in Hong Kong, China, on July 9, 2015.

China Huarong Asset Management has set the indicative price range for its Hong Kong initial public offering, which is aiming to raise up to $2.8 billion as the state-owned firm expands its distressed debt business, sources with direct knowledge of the plans said on Tuesday.

The company and some of its shareholders plan to offer the shares in an indicative range of HK$3.03 (39c) to HK$3.39 each, added the sources, who declined to be identified as details of the deal have not been made public.

Read MoreThe big picture for HK floats looks bright

Huarong last week started pre-marketing the IPO to investors, offering 6.31 billion shares, including a combined 624 million shares from the Ministry of Finance and state-backed grain trader COFCO, according to a preliminary term sheet.

Huarong did not immediately reply to a Reuters request for comment on the IPO terms.