(Yicai Global) March 22 -- The Ferretti Group, which is owned by Chinese diesel engine giant Weichai Holding Group, started a four-day public offering today ahead of its Hong Kong stock exchange debut on March 31. The Italian luxury yachtmaker has set its sights on raising as much as HKD2.36 billion (USD301.6 million).

Ferretti will issue 83.58 million shares for between HKD21.82 (USD2.79) and HKD28.24 apiece, according to the Forli-based company’s initial public offering prospectus. Chinese brokerage China International Capital Corp. is sponsoring the IPO.

Ferretti will use 68 percent of the funds raised to expand its product mix, 24 percent to enhance ancillary service portfolios and 8 percent for marketing and general corporate purposes, it said.

Ferretti, in which Weifang, eastern Shandong province-based Weichai holds a 86.1 percent stake and the Ferrari family 11.1 percent equity, posted a nearly six-fold jump in net profit in the first nine months of last year from the same period in 2020 to EUR32.1 million (USD35.3 million), according to its prospectus. Revenue surged 62.9 percent to EUR693.3 million (USD760.4 million) over the period.

The global yacht market is likely to achieve a compound annual growth rate of 7.3 percent between 2020 and 2025 to reach EUR26.8 billion (USD29.4 billion) by 2025, the prospectus said, citing the China Insights Consultancy.

Editor: Kim Taylor