DONGYUE Group Ltd, a Chinese chemical maker, plans to raise as much as HK$1.4 billion (US$176 million) in a Hong Kong initial public offering to finance expansion, according to an e-mail sent to investors.

The Shandong-based company offers to sell 520 million new shares at between HK$2.05 and HK$2.63 each, the e-mail said. The IPO represents 25 percent of the company's enlarged share capital. Citigroup Inc is arranging the sale. Dongyue started taking orders for the IPO shares yesterday and will continue to do so until November 29 when it will fix the price of the shares. The firm will start trading in Hong Kong on December 10, the e-mail said.