Befar Group (HKG:6745, SHA:601678) launched its Hong Kong initial public offering on Tuesday, seeking to raise up to HK$1.26 billion.

The China-based chemical manufacturer is offering 352.1 million H-shares at an indicative price range of HK$3.05 to HK$3.59 each, according to a Hong Kong bourse filing.

The offering comprises 35.2 million shares for Hong Kong investors and 316.9 million shares for international investors, with the latter subject to reallocation.

The offer price is expected to be determined by July 8, with allocation results due by July 9, ahead of the company's planned trading debut on July 10.

Net proceeds will be used primarily to construct the company's source-grid-load-storage integrated project in Binzhou and enhance its research and development capabilities.

The company also plans to use the funds to build an electronic chemicals production facility in China, expand its overseas sales and service network, and for working capital and general corporate purposes.

The offering has attracted seven cornerstone investors, including Beijing Yian, Luhua Daosheng, Aurora SF, China Hongqiao, and Tianto, who have agreed to subscribe for shares totaling $49.8 million.

Huatai Financial Holdings (Hong Kong) and CCB International Capital are serving as joint sponsors, overall coordinators, joint global coordinators, joint bookrunners, and joint lead managers.