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China defence firm AVIC II eyes Oct HK listing-sources

HONG KONG, Sept 24 (Reuters) - Chinese defence conglomerate Aviation Industry Corp II (AVIC II) hopes to raise US$150-200 million from an initial public offering in Hong Kong late next month, banking sources said on Wednesday.

The company is eyeing a listing on the Hong Kong main board on October 24, a source said. ING and Bank of China International are joint bookrunners for the deal.

AVIC II has said it hopes to list in Hong Kong to help boost its passenger aircraft business.

The listing vehicle will include the company's major business units including minicars, aircraft and helicopters.

AVIC II made a profit of 20 million yuan (US$2.42 million) in 2002 and aimed for 50 million yuan this year, the official China Daily newspaper has reported.

(US$1=HK$7.8=8.28 yuan)