(Adds Greenland Hong Kong share performance, company comment)
HONG KONG, May 15 (Reuters) - Greenland Hong Kong Holdings Ltd, the subsidiary of China’s state-backed Greenland Group, plans to raise up to $220 million to fund its new Internet finance business, according to a term sheet of the deal seen by Reuters on Friday.
The company, the subsidiary of China’s second-largest developer, plans to sell 200 million new shares in the base offer in an indicative range of HK$7.30 to HK$7.50 each, the terms showed. The price is equivalent to a discount of up to 7.9 percent to Friday’s close of HK$7.93.
The deal could be enlarged by another 28 million shares if there is additional demand from investors, according to the term sheet.
A Greenland Hong Kong spokeswoman declined to comment on the share sale.
Shares of the company have jumped 157 percent so far in 2015, outpacing a 15.6 percent gain in the benchmark Hang Seng index.
The company is following State-backed developer China Resources Land and Yuzhou Properties Co Ltd, which unveiled $1.4 billion in share sales earlier this week to fund expansion. (Reporting by Vikram Subhedar; Additional reporting by Clare Jim; Writing by Elzio Barreto; Editing by Biju Dwarakanath)