Shenguan Holdings IPO to raise up to $160 million

Shenguan Holdings Group, a Chinese company that makes the edible coating for sausages, launched an institutional roadshow on Friday for an initial public offering that is seeking to raise as much as HK$1.24 billion $160 million. The company is raising capital to expand its overworked production facilities.

Shenguan is offering 400 million shares at an indicative price range of between HK$2.10 and HK$3.10. A 15% greenshoe, if fully exercised, could increase the final deal size to as much as $184 million.

The company is in a rather niche industry it is a manufacturer of a collagen coating used to case sausage meat -- in other words, the skin...