DOMESTIC home appliances maker Qingdao Haier is looking to raise up to 400 million euros (US$464 million) in the first so-called D-share sale in Frankfurt by a Chinese company.

A Haier listing on the infant China Europe International Exchange (CEINEX) would kick off the D-share project — D is for Deutschland — which aims to attract European investment in Chinese companies.

Haier, already listed in Shanghai, has set a price range of between 1 euro and 1.5 euros per share, it said in a filing Friday morning. That represents a discount of between 20 percent and 46 percent to the company’s Shanghai closing price of 14.95 yuan Thursday.

The company plans to sell 265 million shares, according to the filing, putting the deal size at 265 million to 400 million euros. Total proceeds could potentially reach 457 million euros if Haier fully exercises a 15 percent “greenshoe,” or over-allotment, option.

The deep discount to Haier’s Chinese shares was to ensure the first-of-its-kind deal goes well and attracts European investors, a source involved in the deal said.

“You don’t want to end up with egg on your face,” the person said.

The CEINEX was set up with the blessing of China and Germany in 2015 and is mostly owned by Shanghai Stock Exchange (SSE) and Deutsche Boerse.

The establishment of D shares marks the latest in a series of gradual moves by China to increase foreign engagement with its companies, albeit often at a distance.

Chinese brokerage Huatai Securities Co. last month said it plans to list in London, potentially becoming the first Chinese company to sell shares under the long-awaited Shanghai-London stock connect program.

(SD-Agencies)