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HONG KONG, May 16 (Reuters) - Chinese sportswear retailer Pou Sheng International (Holdings) Ltd plans to raise as much as $396 million in a Hong Kong initial public offering, a source close to the deal said on Friday.
Pou Sheng, which is a spinoff from the world’s top sports shoes maker Yue Yuen Industrial (Holdings) Ltd (0551.HK), is selling 823.4 million shares at HK$2.93-HK$3.75 each, representing a price to earnings multiple of 17.1 to 21.7 times based on 2008 earnings forecast by sponsors, the source said.
Pou Sheng which operates in mainland China, Hong Kong and Taiwan, under licensed brands such as Nike (NKE.N), Adidas ADSG.DE, Li Ning, Reebok, Kappa.
Morgan Stanley (MS.N) and Merrill Lynch MER.N are sponsoring the deal. (US$1=HK$7.8) (Reporting by Kennix Chim; Editing by Louise Heavens)