Chinese conglomerate Fosun International hopes to raise up to $548 million with the IPO of its tourism division which owns Club Med.

The group is seeking funds to expand the all-inclusive resort operator in China betting on a rise in tourism from the world’s second-largest economy.

Fosun Tourism Group, which includes Club Med as well as a luxury resort in the southern Chinese resort city of Sanya, launched the IPO in Hong Kong today.

It aims to raise between $427 million and $548 million, valuing the business at up to $3.13 billion.

The company is selling about 214 million shares – a 17.5% stake – at a price range of between HK$15.6 and HK$20 ($1.99-$2.56).

The group also holds a 6% stake in Thomas Cook Group. Fosun International itself holds another 7.23% of Thomas Cook, which has a joint venture travel agency in China with Fosun.

Fosun Tourism chairman, executive director and CEO Jiannong Qian said the move to go public was part of a long-term strategy.

“After being listed we will be able to catapult our group,” he said, stressing the potential growth in the Chinese tourism industry.

The company plans to use more than half the proceeds from the IPO to develop its Lijiang and Taicang resorts in China, as well as exploring new tourism destinations.

Another quarter of the proceeds will go toward repaying a portion of outstanding bank loans while the rest will go toward expanding its existing business.

Tourism is a key profit growth driver for its parent company, Fosun International, which won control of Club Med in 2015 for $1.1 billion after what was then France’s longest takeover saga lasting almost two years.

Fosun reorganised its businesses in 2016, creating Fosun Tourism Group and paving the way for the listing plan.

Fosun launched its $1.74 billion Atlantis Sanya resort in April in Hainan, a southern province known as China’s Hawaii and targeted by the government for tourism development.

Qian said Fosun had managed to turn Club Med, which was a loss-making company at the time of its acquisition, around.

Fosun Tourism made a loss of 295 million yuan ($42.5 million) in 2017 and 135 million yuan in the first half of this year, according to its prospectus.

Shares of Fosun Tourism will begin their trading debut on December 14, after the public offering closes on December 6.