(Yicai Global) May 29 -- China National Tobacco International (HK), a unit of China National Tobacco Corp., unveiled its Hong Kong initial public offering plan to raise up to HKD813 million (USD117.6 million).

The funds will mostly go to investments, assets acquisitions, international cooperation and emerging market development. 

It plans to issue around 167 million shares at a suggested price range between HKD3.88 (USD0.4.9 cents) to HKD4.88, per the plan it released yesterday, with the value of new shares making up about 25 percent of the expanded issued share capital, the subsidiary said yesterday in a prospectus issued on the Hong Kong Stock Exchange. Its stock code will be [HKG:06055].

It plans to offer new shares between May 28 and May 31 and is expected to decide the price by May 31. It will list on the HKEX on June 12. 

The company will use 45 percent of the funds raised for investments and acquisitions that complement its major business, while 20 percent will support ongoing business growth, and 20 percent will go to cooperation with other international tobacco companies, including exploring and developing emerging tobacco markets together. The firm will spend the rest on general operations and to optimize its management. 

The Beijing-based parent is China's only company that produces, sells, imports and exports tobacco products under the government's monopoly. 

The unit thus has the exclusive rights to import tobacco leaf products and export them to southeast Asia, Taiwan, Hong Kong and Macao. 

It is also the sole exporter of Chinese cigarettes to duty-free stores and wholesalers, with Thailand, Singapore, Hong Kong and Macao its major export markets. 

The company also has exclusive rights to new types of tobacco products, including electronic cigarettes, and exports these products to overseas markets as well. 

Editor: Ben Armour