Qingdao Gon Technology (HKG:2768, SHE:002768) launched its Hong Kong initial public offering on Tuesday, seeking to raise up to HK$1.26 billion.

The China-based supplier of new chemical materials and gelatin- and collagen-derived products is offering 30.0 million H-shares at an indicative price range of HK$34.00 to HK$42.00 per share, according to a Hong Kong bourse filing.

The offering comprises 3 million shares for Hong Kong investors and 27 million shares for international investors, subject to reallocation.

The offer price is expected to be determined by Feb. 2, with allocation results to be disclosed on Feb. 3, ahead of the company's planned trading debut on the Hong Kong Stock Exchange on Feb. 4.

Net proceeds will be used primarily to build a new production base in Thailand, marking the group's first overseas manufacturing expansion and supporting capacity growth in Southeast Asia, as well as to fund a new production base in Yixing, Jiangsu, to expand domestic capacity in organic polymer modified and composite materials.

Funds will also support Hong Kong investments, including the establishment of a regional headquarters and upgrades to an existing production base, as well as working capital and general corporate purposes.

China Merchants Securities (HK) is acting as the sole sponsor and sponsor-overall coordinator.

China Merchants Securities (HK), CLSA, and China International Capital Corporation Hong Kong Securities are serving as joint overall coordinators and joint global coordinators.

They are also joint bookrunners, alongside CMB International Capital, Tiger Brokers (HK) Global, and Livermore.

Joint lead managers are China Merchants Securities (HK), CLSA, China International Capital Corporation Hong Kong Securities, CMB International Capital, Tiger Brokers (HK) Global, and Livermore.