China National Building Materials could use up to 40% of forecast IPO proceeds to reduce debt, and increase capacity with much of the rest, the company has announced. The state-run group expects to generate more than US$230 million when it debuts in Hong Kong. President Cao Jianglin said that about US$90 million of that figure may go towards paying down bank loans. Beijing-based CNBM is offering more than 650 million shares, or 33% of its enlarged share capital, at HK$2.30 to HK$2.75 each. This is equivalent to 11 to 13 times the cement and light building materials group’s projected earnings for 2006.