Italian luxury yacht maker Ferretti S.p.A launched a Hong Kong initial public offering (IPO) on Monday to raise up to $301 million, a term sheet seen by Reuters showed, despite ongoing volatility in global equities markets.

The shares will be priced at HK$21.82 to HK$28.24 each, the term sheet showed.

Ferretti declined to comment.

The company will sell 83.58 million shares in the deal which is going ahead even though markets remain choppy because of the Russia and Ukraine war and rising interest rates in the United States.

Hong Kong's Hang Seng Index has see-sawed in the past week but remains down nearly 9% for the year.

The value of Hong Kong IPOs in the first quarter has tumbled to $837.4 million from $11 billion at the same time in 2021, Refinitiv data showed.

Ferretti is confident the luxury boat sector is immune from a downturn in spending as a result of weaker global economic confidence.

Five Chinese cornerstone investors have subscribed for $129.5 million worth of stock in the deal, the term sheet showed.

The final price of the shares is due to be set on Friday and the stock will start trading on the Hong Kong Stock Exchange on March 31.

(Reporting by Scott Murdoch in Sydney; Editing by Christopher Cushing and Muralikumar Anantharaman)