The company, which is based in Beijing, and Morgan Stanley private equity funds sold 1.38 billion shares, or a 25 percent stake, at 3.98 dollars each in a Hong Kong offering, according to the e-mail, a copy of which was obtained by Bloomberg News.
The price was at the top of the indicative range.
The sportswear industry in China is growing 23 percent yearly and will reach 46 billion yuan, or $6 billion, in 2008, Daiwa Institute of Research said in a June report, citing Zou Marketing, a sports-branding consultancy in Shanghai.
Growing household income may spur faster growth of more fashion-conscious and expensive international brands like Kappa.
"We are bullish on sportswear-related companies given the rising affluence of the general population and growing demand for sportswear and other items related to popular sports and popular sports figures," said Andy Mantel, the managing director for Pacific Sun Investment Management in Hong Kong.
The Olympics Games in Beijing will also increase revenue at companies like Dongxiang, Mantel said.
"It is a growth segment in the Chinese economy in which there are few investment alternatives," he said. Mantel did not subscribe in Dongxiang shares and has bought stock in similar companies.
Dongxiang owns the mainland China and Macao rights to Kappa, an Italian brand known for sponsoring soccer clubs like Juventus.
The initial public offering values the first Chinese sportswear company that bought rights to an established international brand at 21.9 billion dollars, according to its share sale document.
The company earlier marketed the stock at 3.60 dollars to 3.98 dollars a share, it said.
Deutsche Bank and Merrill Lynch arranged the share sale.
Liang Hong, the company secretary of China Dongxiang, could not be reached in her Hong Kong office for comment.
Mark Bennewith, a spokesman for Deutsche Bank in Singapore, and Rob Stewart, a Merrill Lynch spokesman based in Hong Kong, declined to comment.
