Beijing Xinwei Telecom Technology Inc, which owns equipment used in China's standard for third-generation mobile services, may sell as much as 30 percent of itself in an initial share sale, raising more than US$176 million.The company applied to regulators to sell as many as 40 million shares in Shenzhen.

Xinwei said it plans to spend more than one billion yuan (US$129 million) from the listing to develop wireless products for the Chinese cellular market, the world's largest by users, using its synchronous code division multiple access, or SCDMA, standard. It also plans to spend 300 million yuan repaying loans.

While China has said 3G phones in China will use the time division synchronous code division multiple access, or TD-SCDMA, standard - based on Xinwei's system - it hasn't yet awarded network licenses or set a timetable for doing so. The government has said service will be available for the 2008 Olympics.

Xinwei appointed Bank of China International (China) Ltd as underwriter for the listing, the statement said. The company posted a profit of 77 million yuan on sales of 494.2 million yuan in the first six months of 2006.It had an annual profit of 206 million yuan on sales of 1.1 billion yuan in 2005.

China Telecom Corp and China Netcom Group Corporation (Hong Kong) Ltd, the nation's biggest fixed-line carriers, use SCDMA technology for some of their citywide wireless telephone systems.

Xinwei was formed in 1995 as a venture between Datang Group and Cwill Telecommunications Inc. Its shareholders include San Francisco-based WI Harper Group, which manages more US$400 million in venture capital.

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