West China Cement Ltd plans to raise up to US$179m in a Hong Kong initial public offering, a term sheet obtained by Reuters on Monday showed.

West China, the second-largest cement producer in terms of production capacity in 2009 in Shaanxi province, was selling 823.1 million shares, or 20 percent of its enlarged share capital, at HK$1.21 to HK$1.69 per share, the term sheet said.

The company, which plans to delist from London’s Alternative Investment Market, kicked off an IPO marketing road show on Monday, aiming to list in Hong Kong on Aug 23.

The offering price range was about a 1.5 to 29.5 percent discount to West China’s Aug 6 closing price on the AIM index, the term sheet said. The price range also valued West China at 5 to 6.9 times prospective 2010 earnings forecast by sponsors.

The company planned to use 46 percent of the proceeds for capacity expansion, including construction of a new line in Xixiang and the reminder for repayment of loans.