Alibaba-backed (9988) e-commerce platform Huitongda Network has passed a listing hearing in Hong Kong and may raise up to US$1 billion (HK$7.8 billion) through a share sale.

The e-commerce firm, which serves merchants and suppliers in rural China, has now started gauging investor demand for an initial public offering in Hong Kong, according to terms of the deal obtained by Bloomberg News.

The firm plans to use the proceeds to enhance relationships with existing customers and further expand its customer base, optimize the capability and efficiency of its supply chain, increase investment in the IT infrastructure of its platform and enhance SaaS+ business monetization capability.

Also, part of the net proceeds will be used for pursuing strategic alliances, investments, or acquisitions as well as working capital.

Huitongda had planned a Hong Kong listing in 2021 but postponed it amid Beijing's crackdown on businesses and the resulting volatility in stocks last year.

In other news, felt paper manufacturer Vanov (2260) saw its share price rise by as much as 8.20 percent on Bright Smart Securities' over-the-counter platform after pricing its IPO at HK$1.22, the bottom end of the indicative range.

Separately, Chinese cosmetics manufacturer Shanghai Chicmax Cosmetic is mulling a Hong Kong IPO this year, Bloomberg said.

Chicmax had previously considered a listing on the Shanghai stock exchange, according to a document from Citic Securities, which worked as its pre-IPO consultant last year.

Alibaba invested around HK$5.5 billion in the e-commerce firm in 2018. BLOOMBERG

US$1b Huitongda IPO gets green light