China South City Holdings, a Shenzhen-based integrated logistics and trade centre operator, is targetting $406 million in a Hong Kong initial public offering to fund development, according to a term sheet.

The logistics firm plans to sell 1.5 billion new shares at a range of HK$1.40-HK$2.10 each.

China South has a greenshoe option to raise the size of the offer by 15 percent.

Trading in the shares is scheduled to begin on Sept 30.

The IPO is being managed by BOCI and Bank of America-Merrill Lynch.

(Reporting by Leonora Walet and Fion Li; Editing by Jonathan Hopfner)