Graff Diamonds has begun premarketing for the planned $1 billion IPO in Hong Kong this month, to tap the booming demand for luxury products in the region, particularly from the Chinese. 

Graff currently has five directly-operated stores in Asia out of 31 points of sale worldwide. It also plans to open five more in Hong Kong, Macau, Hangzhou, Tokyo and Shanghai this year and then another five in 2013. Asia accounted for 19 per cent of the company's sales in 2011 and is being primed to become its largest contributor in the next years. 

While no confirmation on the date of listing has been announced, insiders say that it could happen on 7 June on the Hong Kong Stock Exchange. New shares will be issued to raise around $800 million, including an overallotment option that will raise the size of the deal by 15 per cent. The sale of secondary shares is still under deliberation. 

Graff Diamonds will be taking orders from investors via a roadshow from 21 to 31 May. The pricing of the deal is set for 31 May. Majority of the proceeds from the IPO will be used to reorganise the firm's business pay debts and other general corporate matters.