With the aim of raising up to 2.6 billion yuan ($381 million) for an expansion, the price range for its Shanghai IPO was recently set by China International Travel Service Corp. This has added a slew of fund-raisings that have already unsettled the country's stock market.

Via a statement Beijing-based China Travel, the country's top tourist agency said: "The company has priced its 220 million A shares denominated in yuan, or 25 percent of its expanded capital after the initial public offering, in the 10.80-11.78 yuan range."

With this range, China Travel will be able to raise 2.4-2.6 billion yuan, much more than the 1.7 billion yuan it had previously planned to raise. However, the demand of its shares might be dampened with the high price earnings (PE) ratio reflected in the pricing.

China Travel's A-share price range represents 45 to 49 times its 2008 earnings on a fully diluted base after the IPO.

In order to expand its core business, including establishing new tourist agencies both at home and abroad, upgrading service facilities and opening more duty-free shops, the A-Share issue proceeds are much required by China Travel.

A number of IPOs, rights and other new share issues have been approved by the China Securities Regulatory Commission (CSRC). These rights and other new share issues have been flowing into the market over the past several months.