China's Sateri nears $1 bln IPO hearing -sources

HONG KONG: The estimated $1 billion initial public offering of Sateri International Group, a maker of specialty cellulose used in everything from sunglasses to ice cream, will be reviewed by the listing committee of the Hong Kong stock exchange on Thursday, sources with direct knowledge said. Sateri, controlled by Sukanto Tanoto and his family, aims to list in Hong Kong in November after the application's approval, one banking source said on Monday.

Forbes lists Sukanto as one of Indonesia's richest people, worth $1.9 billion. Incorporated in the Cayman Islands, Sateri grows eucalyptus trees and produces specialty cellulose in Brazil, and operates a cellulosic fiber mill in China's Jiangxi province to provide materials for textile and non-woven customers. Bank of China International, Credit Suisse and Morgan Stanley are involved in Sateri's IPO.

"The final pricing will very much depend on the market," said one source, who has direct knowledge of the deal but was not authorised to talk to the media about it. The source said Sateri hoped to list after the landmark AIA IPO offering, and before the end of the year.

Married with four children, Sukanto renamed his conglomerate RGE (Royal Golden Eagle). The group, which has $10 billion in assets, owns papermaker April and palm oil firm Asian Agri, according to Forbes. Sukanto was the eldest of seven boys, who dropped out of school at age 17 to help support his family, Forbes says, adding that he taught himself English by translating Readers' Digest, Life magazine and Newsweek.