Hong Kong garment maker Luen Thai Holdings has raised around HK$680 million from its initial public offering.

The company sold 225 million new shares, or a quarter of the company, for the listing and will debut on Hong Kong's main board next Thursday.

Luen Thai counts Polo Ralph Lauren, Wal-Mart, Victoria's Secret and Tommy Hilfiger among its clients and will use the IPO proceeds to expand production facilities on the Chinese mainland, primarily in Dongguang and Qingyuan.

It recently completed work on the 400,000 square foot Dongguan site ahead of the abolition of export quotas in textiles and clothing in January 2005, and is expected to build three more plants over the next two to three years.

In 2003, Luen Thai's turnover was US$545 million. It made more than 52 million garments and exported 76 per cent of its products to the United States.

Last month Yue Yuen Industrial Holdings, the world's largest athletics shoe maker, paid US$33.98 million for 9.9 per cent stake in Luen Thai.