Huishan Dairy Holdings Co Ltd is set to launch an initial public offering in Hong Kong to raise about $1 billion, the Financial Times reported on Tuesday.

Headquartered in Shenyang, Liaoning province, Huishan hopes to launch pre-IPO marketing work on Monday. It will submit its application before the Hong Kong Stock Exchange's listing committee on Thursday.

Huishan is the largest producer of milk in northeastern China. It's a fully integrated dairy company that produces and markets a variety of products. Swiss group Hero bought a stake in Huishan in 2011 after their previous joint venture to make and market infant milk formula.

The company has an 110,000-strong dairy herd and about 1 million acres of grassland in Liaoning province. It aims to have 500,000 cows after the IPO.