China's Zungui Haixi launches Canada IPO

* IPO raises C$37.4 million ($35.6 million)

* Underwriters include CIBC, Canaccord, GMP

TORONTO Dec 21 (Reuters) - Zungui Haixi Corp, which makes brand sportswear and casual footwear for sale in China, said on Monday it raised C$37.4 million ($35.6 million) in an initial public offering on the Toronto venture exchange.

Zungui Haixi, which markets products under the Zungui brand, sold 11,500,000 common shares through a syndicate of underwriters led by CIBC World Markets Inc. and including Canaccord Financial Ltd., GMP Securities L.P. and Research Capital Corp.

"Zungui Haixi intends to use the net proceeds of the offering to expand its retail and distribution network in China, increase production capacity, invest in marketing and promotional activities and for working capital and general corporate purposes," the company said in a statement.

The underwriters have an over-allotment option exercisable for a period of 30 days from closing to purchase up to an additional 1,725,000 common shares at the offering price of $3.25 per share, which would represent a further C$5.6 million.

Zungui Haixi has 61,500,000 common shares issued and outstanding.

($1=$1.05 Canadian)

(Reporting by Pav Jordan)