China Energy Engineering Corp, a State-owned builder of power plants, and an existing investor is seeking as much as $2 billion from a Hong Kong initial public offering.

The Beijing-based company and the National Council for Social Security Fund are offering 8.8 billion shares at HK$1.59 (20 cents) to HK$1.73 apiece, according to terms for the deal obtained by Bloomberg. New shares account for about 90.9 percent of the sale. Twenty cornerstone investors, including China's Silk Road Fund and General Electric Co, agreed to buy a combined $1.27 billion of stock in the offering, the terms show.

Hong Kong IPO fundraising is set to rise to a five-year high this year as Chinese State-owned enterprises seek listings. Initial offerings in the city have raised $28 billion in 2015, up from $18 billion the same period a year earlier, data compiled by Bloomberg show.

Silk Road Fund agreed to buy $300 million of stock as a cornerstone investor in the China Energy Engineering IPO, while State Grid Corp of China will invest $200 million, the terms show. China General Nuclear Power Corp and China XD Group each committed $50 million, while General Electric will invest $15 million.

The company plans to set a final price for the IPO on Dec 2 and start trading Dec 10. China International Capital Corp and CITIC CLSA Capital Markets Ltd are joint sponsors of the deal.