China Cinda Asset Management Co. raised HK$18.5 billion ($2.4 billion) in Hong Kong's biggest initial public offering in a year. Cinda, one of China's four state-owned bad loan managers, prepares to take on more distressed assets.

According to Bloomberg, Cinda sold 5.3 million shares at HK$3.58 apiece, the top of the price range. The company is expected to generate HK$18.5 billion in net proceeds.

The IPO will help Cinda to profit from a new round of non-performing loans following a $6.5 trillion lending spree since the end of 2008. The company plans to use about 60% of the proceeds to enhance distressed asset management, the report said. Bloomberg said Cinda also plans to use about 20% of the IPO proceeds in its financial investment and asset management business. Meanwhile, the remainder will be used to recapitalize its financial subsidiaries that now cover securities, trust, leasing and insurance, the report said.

Cinda was created in 1999 by China's Ministry of Finance to buy bad debts from state-owned banks on the verge of insolvency, the report said.