SHENZHEN-BASED department store operator Maoye International Holdings Ltd. had revived its Hong Kong listing plan and aimed to raise up to US$420 million in its initial public offering, people familiar with the situation said Friday.

The company cut the price range and size of its share sale, the people said. It is now selling 863 million shares, or 15 percent of its enlarged share capital, in an indicative range of between HK$2.9 (37.23 U.S. cents) and HK$3.8 a share.

It sought to sell 1.25 billion shares, or a 25 percent stake, in a HK$4.35-HK$5.65 range in January, but shelved that IPO because of volatile market conditions.

The latest price range was equivalent to 19 to 25 times Maoye’s forecast 2008 net profit of around 635 million yuan (US$90.71 million), analysts said.

“The company has taken into consideration the recent volatility in the equities market. So instead of setting a price range that’s at a premium to its peers, like what it did back in January, the range now is at a discount,” one person said.

New World Department Store China Ltd. is trading at a 2008 price/earnings ratio of 24 times, while Intime Department Store Group Co. is trading at 18 times.

Maoye plans to use the IPO proceeds to acquire department stores, expand its retail network and upgrade its information technology systems.

Maoye has adopted an accelerated bookbuilding approach for its IPO. The bookbuilding for its institutional and retail tranches will last for just four days starting today.  (SD-Agencies)