Sunshine 100 China Holdings Ltd, a commercial and residential real estate developer in second- and third-tier Chinese cities, raised about $258 million after pricing its Hong Kong initial public offering at the bottom of expectations, IFR reported on Thursday.

The company, which is backed by US private equity firm Warburg Pincus, priced the IPO at HK$4.00 ($0.52) per share, compared with a marketing range of HK$4.00 to HK$4.80 each, added IFR, a Thomson Reuters publication.

Sunshine 100 offered 500 million shares, putting the total deal value at HK$2 billion.

The company plans to use 60 percent of the IPO funds to buy new projects and land for development in the Chinese mainland, with 30 percent set aside to finance the development of 14 existing projects in the country.

BNP Paribas, China International Capital Corp (CICC) and Citigroup acted as joint global coordinators for the IPO, with six other banks also helping to manage the deal.

The banks stand to earn $6.45 million, according to Sunshine 100's IPO prospectus. CICC and Citigroup may also earn an additional $1.8 million incentive fee, or 0.7 percent of proceeds, from their roles as joint sponsors of the IPO, while CICC alone will earn another $774,000, or 0.3 percent of proceeds.