BBMG Group, one of China’s largest contruction materials producers, hopes to raise US$700 million in an initial public offering on the Hong Kong stock exchange, Reuters reported. BBMG plans to sell 933.33 million shares. Three-quarters of the proceeds will be used to fund expansion plans and the remainder will be used to repay bank loans and as working capital. Mainland-based China Life Insurance Company is the largest current shareholder in BBMG. The IPO will be handled by the Macquarie Group, which will be joint lead manager of the issue, and UBS. Pricing will be fixed on July 23 and trading will start on July 29. Analysts believe BBMG’s IPO prospects are good because in addition to profiting from China’s renewed construction orders, BBMG is also a "property play," and the mainland real estate sector has recovered significantly over recent months.