Peak Sport Products Co., the Chinese sportswear maker and distributor that sponsors seven U.S. National Basketball Association players, may raise as much as HK$1.9 billion ($278 million) in a Hong Kong initial public offering.

The Fujian, southern China-based company plans to sell 419.58 million shares at HK$3.55 to HK$4.55 apiece, according to the term sheet of the sale obtained by Bloomberg. It may increase the sale by 62.9 million shares to meet demand.
Peak Sport plans to fix the price of its shares on Sept. 22 and list on Hong Kong’s stock exchange on Sept. 29, according to the term sheet. Credit Suisse Group AG is leading the sale.

The company plans to use about half of the sale proceeds for media advertising and brand promotional activities, Bloomberg News said. About a third will be used to boost apparel and footwear production and expand its sales network, the term sheet said.

The company, better known for its basketball shoes, ranked alongside Nike Inc. and Li Ning as one of three most-recognized sports footwear brands in China, Credit Suisse said, quoting a November 2008 survey.

Its profit more than doubled last year to 375.9 million yuan ($55 million) with total sales of 2 billion yuan ($292.8 million), according to the report.

The nation’s sportswear market is expected to expand at an annual
average of 18 percent to 149.1 billion yuan ($21.8 billion) by 2013,
according to an estimate by ZOU Marketing Inc., a Shanghai-based
provider of sports branding services, quoted in a Credit Suisse report
on Peak Sport dated Aug. 28.

Peak Sport had nearly 5,670 stores, 95% of them in smaller Chinese
cities, by the end of June, the Credit Suisse report said. It more than
doubled the size of the network in the two-and-a-half years to June, it