China Meilan Group eyes $128 mln HK IPO -paper

HONG KONG, March 22 (Reuters) - China Meilan Group, a chlorine and refrigerant products maker, aimed to raise up to HK$1 billion ($128 million) in an initial public offering in Hong Kong in the second half of 2008, a Hong Kong newspaper reported on Saturday.

South China Morning Post cited a source as saying the Jiangsu-based listing hopeful planned to raise capital to fund capacity expansion, and BNP Paribas (BNPP.PA: Quote, Profile, Research, Stock Buzz) had been mandated to lead the offering.

The newspaper cited another source as saying the IPO of China Meilan Group, which produces fluororesin, fluoro-refrigerant, chlorine alkali, pesticide and thermoelectricity, would take place in the third quarter at the earliest, subject to market conditions.

Despite market weakness, many industrial firms are expected to proceed with their IPO plans in coming months, including Chongqing Machinery and Taiwan's Asia Cement, the paper said. It gave no further listing details.

Earlier this week, Chinese property developer Evergrande Real Estate Group scrapped a plan to raise up to $2.1 billion in a Hong Kong IPO, while Wing Fat Printing, a spin-off by Shanghai Industrial Holdings (0363.HK: Quote, Profile, Research, Stock Buzz), also withdrew its $89 million IPO, adding further gloom to the market for capital raising. (US$1=HK$7.8) (Reporting by Donny Kwok; Editing by Michael Urquhart)