Graff Diamonds, known for selling multimillion-pound jewels to the super rich, will be valued between $3bn and $4bn when it lists in Hong Kong, according to people familiar with the process.

The jeweller is looking to raise $1bn by selling between 25 and 35 per cent of the group in a roadshow that kicks off on Monday. That would make it the second largest initial public offering this year in Hong Kong, following the $1.8bn share sale by China’s Haitong Securities last month.

Bankers last night set a pricing range of 18-24 times Graff’s 2012 earnings. The high-end jewellery retailer, whose sales are dominated by customers at its flagship store in London’s Mayfair, will use the proceeds to fund a reorganisation, pay down $150m worth of debt and to expand, particularly in Asia.