The planned IPO of Langham Hospitality Investments, backed by Hong Kong tycoon Lo Ka Shui"s Great Eagle Holdings Ltd. conglomerate, plans to raise up to US$588 million in an initial public offering.

　　The company that owns the Langham hotel chain in Hong Kong plans to raise up to US$588 million in an initial public offering, joining at least three other companies in tapping the city"s capital market after a slow start to the year.

　　The planned IPO of Langham Hospitality Investments, which is backed by Hong Kong tycoon Lo Ka Shui"s Great Eagle Holdings Ltd. conglomerate, is the latest in a series of planned IPOs in the territory that could raise up to $5 billion, or five times the amount raised so far this year.

　　New-share issuance in Hong Kong, the top global destination for IPOs from 2009 to 2011, has been weak in recent years. The city fell to the fourth spot last year and ranks 12th globally so far this year, well below market leader New York Stock Exchange, which has chalked up $11.1 billion worth of IPOs, according to Dealogic.

　　However, the city"s fortunes are changing. Sinopec Engineering (Group) Co. and China Galaxy Securities Co. are taking investors" orders for their IPOs, which could raise up to $3.6 billion, while Hopewell Hong Kong Properties Ltd. started gauging investors" interest for its roughly $800 million initial public offering on Monday.

　　Langham Hospitality, which will list its Hong Kong hotel assets as a trust, plans to sell 852 million units in a range of 4.65 Hong Kong dollars (60 U.S. cents) to 5.36 Hong Kong dollars each, according to a term sheet seen by The Wall Street Journal. Trusts typically pay dividends from cash flow and are popular among investors seeking steady and long-term income.

　　The planned listings come as Hong Kong"s stock market, one of the world"s most buoyant last year, has this year struggled to match gains made by peers in the U.S. and Japan. The benchmark Hang Seng Index is up just 2% this year, after gaining 23% in 2012. But, as a mark of investors" hunger for yield, the Hang Seng REIT Index has gained 18% so far this year.

　　Langham Hospitality has three hotels in Hong Kong—The Langham, Langham Place Hotel Hong Kong and Eaton, Hong Kong. It started taking orders from investors Monday and is scheduled to list on the Hong Kong bourse on May 30, according to the term sheet. Deutsche Bank AG and HSBC Holdings PLC are handling the deal, Great Eagle said in an earlier announcement. Citigroup Inc. is also working on the IPO, a person with knowledge of the matter said.

　　If successful, the listing would provide Mr. Lo"s Hong Kong-based company with capital for new investments at a time when the city"s tourist arrivals are hitting new highs. The Langham hotel chain is popular among high-end mainland Chinese travelers, who make up the bulk of tourists in Hong Kong.

　　Mr. Lo is ranked No. 37 on the Forbes 2013 Hong Kong Rich List with a net worth of $1.33 billion. He has been investing heavily in expanding Langham"s chain of hotels globally, and said in October the company plans to buy a hotel property on New York City"s Fifth Avenue for $229 million

　　Separately, Hopewell Hong Kong, a property spinoff from conglomerate Hopewell Holdings Ltd., is one step closer to launching its IPO, according to another term sheet seen by The Wall Street Journal.

　　The property developer is gauging investors" interest and plans to use 34% of the proceeds from its roughly $800 million IPO to develop Hopewell Centre II, a proposed hotel complex adjacent to its flagship building in Hong Kong"s Wanchai district, the term sheet said. The remaining funds will go toward acquiring new projects and repaying loans.

　　BOCI Asia Ltd. and Credit Suisse Group are handling the Hopewell deal, the document said.