Nov. 3 (Bloomberg) -- Tingyi (Cayman Islands) Holding Corp., the Taiwan family business that has become China’s biggest noodle producer, plans to sell equity on the island’s bourse as relations with China strengthen.

The biggest maker of packaged food in China plans to offer as many as 380 million Taiwan depositary receipts, backed by 190 million shares, it said in a statement. Tingyi rose 2.9 percent to close at HK$17.90 in Hong Kong trading yesterday.

Tingyi, which has almost doubled in market value this year, joins companies like Want Want China Holdings Ltd. that are raising funds through Taiwan’s exchange after the island’s government eased restrictions to boost the capital markets last year. Tingyi targets as much as 16 percent growth a year in China, the world’s most populous country.

The maker of Master Kong and Fumanduo noodles plans to transfer as many as 190 million shares owned by holding company Ting Hsin International Group, according to the statement to Hong Kong’s stock exchange late yesterday. Sinopac Securities is the underwriter, Tingyi said in a filing to Taiwan’s stock exchange.

Chief Financial Officer Frank Lin last month said Tingyi’s parent would sell Taiwan depositary receipts, without providing more details. The sale will raise more than NT$10 billion ($307 million), Taiwan’s Economic Daily News reported Sept. 26, without citing anyone.

China-Taiwan Relations

Taiwan regulators announced in July 2008 it will scrap a rule that bans companies with major stakeholders from China from selling shares on its stock exchanges as ties improved. Ties between mainland China and Taiwan have warmed after the island’s President Ma Ying-jeou, who took office in May last year, abandoned his predecessor’s pro-independence stance and eased curbs on economic exchanges such as direct transport links.

Tingyi, founded 17 years ago, runs 24 noodle factories and has at least one bottling plant for its teas in each of China’s 31 provinces apart from Tibet.

Net income for the Tianjin, China-based company surged 41 percent to $179.4 million in the first half from a year ago. Sales gained 22 percent to $2.5 billion.

Rising incomes and government stimulus spending in China are stimulating demand for packaged food. China’s cabinet said last month it will maintain stimulus measures, as the economy expanded 8.9 percent in the third quarter, the fastest pace in a year. The nation’s $586 billion stimulus package has been focused on infrastructure projects and spurring domestic demand.

To contact the reporter on this story: Sophie Leung in Hong Kong at sleung59@bloomberg.net

Last Updated: November 2, 2009 18:32 EST