Garment maker Rontex International Holdings has announced it plans to fund its worldwide expansion through an initial public offering aimed at raising up to HK$29 million.

The company, whose clothes are sourced in China and sold in South America, plans to issue 60 million shares at HK$1 to fund the purchase of new equipment and new plants in Ningbo and Beijing.

Rontex's main markets are Peru and Chile and it also wants to set up two new production lines for men's and women's cashmere jackets and mid-to high-end men's suits.

Rontex chairman and co-founder Ronald Cheung said: "After the initial public offer, we will continue to strengthen our leading position in the South American market, and extend our presence in such international arenas as Japan, Korea and Europe."