China Cinda Asset Management Co. Ltd. launched an initial public offering (IPO) in Hong Kong on November 28.

With a planned issuance of 5.32 billion H-shares, Cinda has set a range of HK$3 ($0.39) and HK$3.58 ($0.46) per share. It expects to raise HK$16.97 billion ($2.19 billion). Shares of the company will be listed on December 12 on the main board of the Hong Kong stock exchange.

The IPO marked the first of its kind for Chinese financial assets management companies. Cinda, as one of the big four state-owned asset management firms, was restructured as a joint-stock company in June 2010. It focuses on collecting banks' bad debts, bankruptcy management, outbound investment, securities trading, investment and financial risk counseling.

The company said that the funds raised through the IPO are intended to replenish its capital, 60 percent of which will be used to develop its core business of bad asset management, with the remainder to be used as capital injection to subsidiary companies and financial investment and asset management.