Honghua Group Ltd, the world's second-largest maker of onshore oil rigs, may raise as much as HK$3.75 billion (US$481 million) in a Hong Kong initial public offering, sources told Bloomberg News.

Honghua, based in Chengdu, southwestern China, is offering about 833.4 million new shares at HK$3.16 to HK$4.50 each.

Hong Kong's IPO market has had the slowest start in eight years, with one sale completed so far.

About 60 companies pulled or delayed IPOs worldwide as stocks tumbled amid mounting financial industry losses linked to United States mortgages to people with poor credit.

"The liquidity crunch is severe and no doubt investors prefer cash to risky assets now," said Winson Fong of SG Asset Management in Hong Kong.

Honghua is the first company to start taking orders for a Hong Kong IPO after the Chinese New Year.

Honghua and China Railway Construction Corp may help revive the city's stock fundraising scene, Fong said.