Milestone Capital, a China-based growth capital fund manager, has agreed to become a cornerstone investor in Chinese restaurant chain Xiao Nan Guo’s Hong Kong IPO. Xiao Nan Guo, which has 57 branches across the country, specializes in Shanghai cuisine. The company is looking to sell 341.25 million shares at HKD1.50 (US$0.13) per share to raise HK$511.5 million (approximately US$65.9 million). A Milestone subsidiary will buy US$22 million worth of shares, which would give it a 7.7 percent stake in the listed company.