Shenzhen department store seeks up to $130 million from HK IPO

Shirble Department Store Holdings, a Shenzhen-based department store operator, is looking to raise as much as HK$1 billion $130 million in a Hong Kong initial public offering to fund its expansion in southern China.

In theory, growing wages in this part of the country make retail consumption plays more appealing, especially locally well-known brand names like Shirble, which has many loyal customers in Shenzhen, a city just across the border from Hong Kong.

But the issue comes at a time when there are bigger names in the market competing for investor demand. Agricultural Bank of China ABC is expected to absorb a lot of market liquidity with its massive A- and H-share IPO of...