Chinese woven fabric producer Art Textile Technology International Co Ltd saw its shares debut on the Hong Kong market at a 20 per cent premium on Wednesday.

The firm raised HK$109.4 million (US$14m) from the heavily oversubscribed initial public offering and will use the proceeds to expand its production and distribution operations, particularly in the European market.

Art Textile reported a net profit of HK$42.8m in the year ended June 2002, up 54 per cent from the year prior.

Vice chairman and executive director, Chen Dong, said: "Our medium-term target is for overseas sales to contribute about 30 per cent of total sales by 2005. But our strategy is to expand one step at a time."