Red Avenue New Materials Group (SHA:603650, HKG:9607) launched its Hong Kong initial public offering on Monday, seeking to raise up to HK$3 billion.

The China-based new materials provider is offering 68.1 million H shares at an indicative price range of HK$39.00 to HK$44.00 each, according to a Hong Kong bourse filing.

The offering comprises 6.8 million shares for Hong Kong investors and 61.3 million shares for international investors, subject to reallocation.

The offer price is expected to be determined by Sept. 25, with allocation results due by Sept. 28, ahead of the company's planned trading debut on Sept. 29.

The proceeds will be used mainly to enhance R&D capabilities, upgrade and maintain production facilities, and fund strategic investments and acquisitions.

The company also plans to repay bank borrowings, expand its overseas market presence and supply capabilities, and allocate the remainder to working capital and general corporate purposes.

The IPO has eight cornerstone investors, including Goldshore, Full Truck, Happy Wisdom, and CNCB Investment, which have committed to subscribing to a combined $126 million worth of shares.

Haitong International Capital is serving as the sole sponsor, while Haitong International Securities is acting as sponsor-overall coordinator, overall coordinator, joint global coordinator, joint bookrunner and joint lead manager.