China National Building Material reportedly raised US$231 million in a Hong Kong initial public offering due to strong demand. The company with investments in cement and engineering services through stakes in five firms shifted 654.214 million shares at the equivalent of US$0.35 each, priced at the top end of expectations. About 300 institutional investors put in orders, leading to oversubscription by a factor of 38. The retail offering was covered more than 420 times, meaning 50% of the deal was offered to retail investors. At its IPO price, CNBM is offering 33% of its enlarged share capital at 11 to 13 times earnings for 2006. The building firm plans to increase cement production from 10.9 million tonnes, as in September 2005, to 15.8 million tonnes by 2007.