China's largest cotton textile producer, Weiqiao Textile Co Ltd, was on Friday said to have raised HK$2.12 billion (US$272 million) from its initial public offering.

Banking sources said the deal was priced near the top end of a previous stated range while the firm said it plans to use the proceeds to repay bank loans, expand production and chase acquisitions.

Weiqiao supplies major fabric companies Texwinca Holdings Ltd and Fountain Set (Holdings) Ltd.