Chow Tai Fook, the world’s largest jeweler, plans to raise US$3.5 billion in an initial public offering in Hong Kong that would be one of the biggest IPOs of the year, The Wall Street Journal reported, citing people familiar with the matter. The jeweler is 50% larger than Tiffany & Co (TIF.NYSE) by revenue, largely thanks to strong gold sales at its more than 1,500 outlets in Asia, many in smaller Chinese cities. The family that owns the 80-year-old brand may offload between 10.5% and 13% of their stake during the offering. Due to recent volatility on the Hong Kong exchange, the family has reduced the IPO price to between 18-25 times forecasted 2013 fiscal-year earnings from a previously planned valuation of more than 30 times, said a person familiar with the situation. Despite the lower valuation, if the IPO goes forward as planned it would still be the fifth largest in the world this year.