FUQI ------------------------------------------------------------------------------------ AP Fuqi International Sets Terms of IPO Tuesday October 2, 6:16 pm ET China's Fuqi International Plans Initial Public Offering of 6.4 Million Shares to Raise $47.5M NEW YORK (AP) -- Chinese jewelry maker Fuqi International Inc. said Tuesday it expects to raise about $47.5 million in an initial public offering of 6.4 million shares of common stock, according to a filing with the Securities and Exchange Commission. ADVERTISEMENT Fuqi has granted the underwriters the option to buy up to an additional 963,750 shares to cover any overallotments. The company said it expects the offering to price between $7 and $9 per share. Fuqi filed a preliminary prospectus with the SEC in July, but did not disclose any terms. Assuming an offering price of $8, the company anticipates proceeds of about $47.5 million, or $55 million if the underwriters exercise their overallotment option in full. The company expects to use the proceeds for general corporate purposes, including expansion of its retail operations and production lines. Fuqi designs jewelry in a range of styles and designs using such precious metals as gold and platinum, as well as diamonds and other stones. Fuqi has historically sold its products directly to distributors, retailers and other wholesalers. But the company recently initiated a retail strategy to open its own sales outlets in China focusing on finished gemstone jewelry, which Fuqi previously provided on a custom-order basis only. The company intends to open 20 retail counters and two retail stores in 2007, and 60 to 80 retail counters and eight to 10 retail stores in 2008. For the six months ended June 30, the company reported net income of about $3.4 million, compared with income of $2.8 million in the first half of 2006. Sales for the period rose 12 percent to $54.2 million from $48.5 million in the prior-year period. Merriman Curhan Ford & Co. and Brean Murray, Carret & Co. are listed as underwriters of the offering. The company has applied to list its shares on the Nasdaq Global Market under the symbol "FUQI."