China National Materials Co said the retail tranche of its Hong Kong initial public offering (IPO) was 282 times oversubscribed, while the international tranche was very significantly oversubscribed.

The cement equipment and engineering services firm, also known as Sinoma, said it priced the IPO at the top end of the indicated range of HK$3.2-HK$4.5.

Due to oversubscription, the company will allocate 50 percent of the 932 million offer shares to retail investors instead of 10 percent as originally planned.

Sinoma said it will raise net proceeds of HK$3.86 billion from the IPO, which will be used to develop its existing businesses and to repay loans. The shares will begin trading tomorrow.