(Bloomberg) -- Keda Industrial Group Co., a Chinese building materials manufacturer, kicked off the sale of its global depository receipts in Zurich. 

It becomes the first among a group of Chinese companies to tap the newly expanded stock-connect program for a listing in Switzerland.

The Shanghai-listed firm opened books to sell 12 million GDRs at a range of $14.43 to $14.58 each, according to terms of the deal seen by Bloomberg News. At the top of the range, Keda would raise as much as $175 million from the offering.

The price implies a discount to Keda’s closing price on Friday of 8.3% to 9.3%, Bloomberg calculations show. Each Keda GDR is equivalent to five of its ordinary shares, according to the terms.

The sales are the first of a group whose GDR offerings are poised to hit the Swiss market, giving Chinese companies another route to raise funds overseas. More companies are set to join, with firms including Gotion High-Tech Co. considering taking orders as soon as Monday, Bloomberg News has reported.

China expanded its cross-border listing program in Europe this year in a bid to attract more foreign capital to its market. The facility allows companies listed on one exchange to offer depository receipts on the other. In February, the China Securities Regulatory Commission said it would extend the existing Shanghai-London Stock Connect to include firms in Switzerland, Germany and Shenzhen.

Read More: Chinese Firms Said to Plan Swiss Share Sale Launch This Week

There is an over-allotment option of an additional two million GDRs, and an upsize option of as many as 6 million GDRs, the terms show. The company will use the proceeds from the sale for purposes including building new production lines, expanding production capacity and increasing investment in research and development.

Keda’s offering drew a cornerstone investor in Guangdong Foshan Manufacturing Transformation and Development Fund, which is set to purchase $44 million worth of GDRs, the terms show. Book closing for the sale and pricing are expected to conclude Friday, and the shares could begin trading on July 28.

China International Capital Corp. is sole global coordinator and joint bookrunner on the listing. 

(Updates with additional details from terms in seventh and eighth paragraphs.)

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