Mainland sporting goods company XTEP international is expected to be listed on the Hongkong stock exchange in June 3rd and plans to raise HK $2 billion 230 million.

JP Morgan and UBS are the sponsors of XTEP international listing.

XTEP International's listing is expected to issue 550 million new shares, accounting for 25% of the enlarged share capital.

It will be priced at HK $4.05 per share, which is the lower limit of HK $4. 5 to HK $5. 50.

About 24% of the funds raised will be invested in the acquisition of brand and new projects. About 22% will be involved in media advertising and brand promotion activities. About 17% will be used to expand and improve distribution networks, and about 19% will be invested in the expansion of garment production plants.

The private equity fund, Carlyle's two investment funds, invested $29 million 270 thousand in XTEP in September 2007.

Its Asian growth three phase fund accounts for 9.2% shares, Asian growth three phase fund's CAGPIIICo-investment, L.P. occupies 0.4% stock.

After the listing, the two funds accounted for 6.9% and 0.3% of the shares respectively.

XTEP international was formerly an original equipment manufacturer (OEM) enterprise founded by Chairman and CEO Ding Shui Bo in 1999. In 2002, XTEP began to produce sports apparel products such as sports shoes, clothing and accessories.

In 2007, XTEP brand accounted for 3.4% of China's sporting goods market, accounting for 17% of the market share of fashion sports products.

In November 2006, the company signed a concession agreement with Disney of the United States to sell Disney sports series brand in China.