Chinese dairy giant Liaoning Huishan Holdings (Group) Co. is understood to be seeking to raise US$1bn through the launch of an IPO.

Liaoning Huishan is hoping to launch the pre-deal marketing work on the initial public offering on Monday, the Financial Times reported this week. An application was put before the Hong Kong stock exchange’s listing committee yesterday (29 August), the publication said.

The IPO will raise funds to increase the firm’s herd and improve milk yields, sources familiar with the matter told the FT. The funds could raise the group’s cattle herd from 110,000 to around 500,000, the source said.

Deutsche Bank, Goldman Sachs and UBS are understood to have been appointed to lead the IPO.

The Chinese dairy announced plans to raise between US$800m and $1bn through the launch of an IPO in November last year. At the time, reports said the offering was expected to take place in second half of 2013.

The company could not be reached for commet.