The Wall Street Journal reports that French skincare and personal care retailer L’Occitane International S.A. is seeking up to $810 million in a Hong Kong initial public offering, according to a source familiar with the situation.

The deal size is more than the $300 million bankers had predicted the company could raise just three weeks ago, as the benchmark index’s ability to stay above the 20,000 level instills confidence in the buoyancy of the stockmarket. The Hang Seng Index dropped 2.1% to 21,405 Monday due to jitters about China’s heated property sector, but has stayed above 20,000 for two months, writes Amy Or of The Wall Street Journal.

The proposal by L’Occitane, which would be the first listing in Hong Kong by a French company, comes on the heels of UC Rusal’s US$2.55 billion flotation in January. Rusal is the first Russian company to list in Hong Kong.

L’Occitane is selling 364.1 million shares in a range between 12.88 and 15.08 Hong Kong dollars (US$1.65 to US$1.93) to raise up to $705 million, the source said. The company has the option to increase the deal size by 15%, raising it to $810 million, the report said.

According to its preliminary prospectus, L’Occitane is estimating a net profit of at least $99.7 million in the fiscal year ended March 2010.

L’Occitane, which also owns the Melvita and Le Couvent des Minimes brands on top of its main line–L’Occitane en Provence–said its three major markets are Japan, the U.S. and France, which account for over half of sales.

Proceeds from the IPO will be used to expand distribution in high-growth, emerging markets and in developed markets where L’Occitane hasn’t yet achieved a major presence, according to the prospectus. Proceeds will also go towards developing new products and marketing.

HSBC Holdings PLC, CLSA Asia-Pacific Markets and UBS AG are bookrunners on the deal, people familiar with the situation said earlier, according to The Wall Street Journal.