UPDATE 1-S.Korea's Jinro delays IPO, sets new pricing range

* Jinro delays IPO, new book-building expected late September

* Pricing range lowered to 45,000-50,000 won

SEOUL, Sept 17 (Reuters) - South Korean spirit maker Jinro Ltd said on Thursday it had decided to delay its initial public offering because of new information made public, and set a new pricing range lower than the previous one.

Jinro, majority controlled by South Korea's Hite Holdings (000140.KS), said in a filing with the local regulator that it had lowered the pricing range to 45,000-50,000 won from a 54,000-60,000 won range given last month.

Jinro would raise at least 648 billion won ($537.6 million) based on the new pricing range versus the as much as $708 million it aimed to raise previously.

Jinro plans to offer 14.4 million shares held mostly by its number two and three shareholders -- savings associations of military officers and teachers.

An official at Woori Investment & Securities (005940.KS), which with Samsung Securities (016360.KS) is lead managing the IPO, said it was delayed due to new information carried by the media last week that was not included in the IPO book, adding that there were "concerns about legal issues."

Jinro had told journalists last week that it was planning to offer 50 percent of its net profits to shareholders via dividends, and would also seek to further strengthen shareholder value with share buybacks and cancellations.

"[The delay] has nothing to do with new pricing," the official said, adding that the new book-building would take place in late September, with pricing will likely be made public in the first week of October.

This is the second entry into South Korea's stock market for the country's biggest maker of soju -- literally "distilled drink," usually made from grain or potatoes and with an alcohol content of about 20 percent. It was delisted in 2003 following its bankruptcy.

Analysts had said the previous price range was too high given the sector's average and the soju market's slow growth.

Jinro has to battle with stronger rival Lotte, which bought the country's No. 2 soju maker for $386 million this year, and provincial manufacturers trying to break into the Seoul metropolitan region -- home to half the country's population.

"The range probably has been lowered as that's what investors saw as a more appropriate level," said Baek Un-mok, an analyst at Daewoo Securities.

The new price range represents roughly 12 to 13 times Jinro's forecast net profit for the year versus the 14 to 16 times indicated previously. That compares with Japanese beer maker Asahi Breweries' (2502.T) 15 times.

"It seems with the previous range Jinro wanted to reflect its plans for shareholder-friendly policies, such as generous dividends, but investors wanted more attractive pricing," said Song Kwang-soo, an analyst at Meritz Securities.

Tong Yang Life Insurance is also set to price its $282 million-$365 million IPO later this month, becoming South Korea's first listed life insurer, ahead of the November debut of steel maker POSCO's (005490.KS) construction arm in an offering worth up to 989 billion won ($821 million). [ID:nSEO91629]

Elsewhere in the region, Japanese brewer Kirin (2503.T) is set to buy Australia's second-largest brewer Lion Nathan Ltd LNN.AX for $2.8 billion, and Japanese brewer Suntory Holdings [SUNTH.UL] is in talks to buy soft drinks maker Orangina. [ID:nT365781]

(Reporting by Jungyoun Park and Kim Yeon-hee; Editing by Jonathan Hopfner)