Chinese property developer KWG Property Holding Limited plans to raise up to HK$4.6 billion (US$583 million) in a Hong Kong initial public offering, according to a term sheet seen by Reuters on Tuesday.

The company, a developer specialising in mid- to high-end residential developments in Guangzhou, plans to sell 625 million shares, or 25 percent of its enlarged share capital, at HK$5.90 to HK$7.28 apiece.

KWG launched marketing roadshows in Hong Kong on Tuesday and expects to start trading under the symbol on July 3.

Based on the top end of the IPO indicative price range, the valuation of KWG could be HK$18.2 billion, which is a 19.7 to 29 percent premium to Morgan Stanley's estimate of the company's net asset value (NAV).

Morgan Stanley, one of the sponsors of the deal, estimates the company's end-2007 NAV at HK$14.1 billion to $15.2 billion.

A US$1.66 billion IPO in April by Country Garden Co., the biggest by a Chinese developer, priced at 35 percent above its NAV.