Country Garden Holdings Co, China's most profitable developer, has raised HK$12.9 billion (US$1.65 billion) in a Hong Kong initial public offering, two people with knowledge of the sale said.

Country Garden sold 2.4 billion shares, equal to a 15 percent stake, at HK$5.38 apiece, said the people, who declined to be identified, Bloomberg News reported. The sale, at the top end of the range, values Guangdong-based Country Garden at about US$11 billion in the biggest IPO by a Chinese real estate developer.

It underscores optimism about China's property market even as the government tries to prevent overheating.

For example, average home prices jumped 12 percent last year in Guangdong Province, where home sales have risen 22 percent annually in the decade through 2005.