China Communications Construction Group, the state-owned port and road builder, plans to raise as much as $2 billion in an initial public offering in Hong Kong, said two people with direct knowledge of the proposed sale.

China Communications Construction, which also makes port machinery such as container cranes, will sell about 24.5 percent of its share capital for US$1.5 billion to US$2 billion, said the people, who declined to be identified because details are still under discussion.

Proceeds will be used to buy construction equipment for roads and ports, reduce debt and boost production at its container-crane factory in Shanghai, the people said.

"I would be surprised if their order book isn't increasing," said Bruno Vanier, a Paris-based fund manager at Edmond de Rothschild Asset Management in Paris, which has US$16.6 billion of assets.

UBS AG, Merrill Lynch & Co. and BOC (International) Holdings Ltd. are jointly arranging the sale.

China Communications Construction, formed from the merger of China Harbour Engineering Co. and China Road and Bridge Corp., has reserved 95 percent of the shares for institutional investors. Order-taking will run from November 28 to December 8. The rest will be sold to retail investors in Hong Kong from Dec. 1 to Dec. 6.

The IPO will be priced Dec. 9 and trading will begin on the Hong Kong stock exchange on Dec. 15.