Five China firms eye $1.1 billion in HK IPOs

HONG KONG (Reuters) - Five Chinese companies are targeting up to a combined $1.1 billion from initial public offerings in Hong Kong this week, reinforcing the fundraising wave that made it the world's No. 1 IPO market in 2009.

The companies came after Russian's UC RUSAL, the world largest aluminum producer, priced its $2.2 billion deal in the mid-point of the range last week, and several of this week's deals are quite small.

China, with a number of companies expected to float shares on Hong Kong markets this year, will be represented by International Mining Machinery (IMM) and Chu Kong Petroleum & Natural Gas Steel Pipe, which plan to raise up to $427 million and $237 million respectively, from Hong Kong initial public offerings.

Both companies are kicking off formal marketing roadshows on Monday, planning to set the trading debut for Feb 10.

Coal mining machinery maker IMM, backed by private equity firm The Jordan Company, is set to sell 520 million new shares at an indicative price range of HK$4.88-HK$6.38 per share, according to a term sheet sent to investors.

The issue will be priced on Feb 3 New York time and UBS (UBSN.VX) and BOC International are handling the deal.

Chu Kong plans to sell 300 million shares, including 83.3 percent primary shares and 16.7 percent secondary shares, at an indicative price range of HK$4.50-HK$6.15 apiece. JPMorgan (JPM.N) and ICBC are underwriting the deal.

Roadshows were launched last week for the other Chinese IPOs, which include property developer China SCE Property Holdings, which is set to raise up to $255 million, and reinforced materials maker Sija Group Company Ltd, aiming for up to $133 million.

Chinese sportswear maker Meike International also plans to raise up to $46 million.

The Hong Kong Stock Exchange generated over $30 billion in IPO proceeds last year, more than any other bourse, and plans to attract more foreign companies to diversify a listing pipeline currently dominated by Chinese firms.

Analysts expected UC RUSAL's listing could be the springboard for other Russian firms to tap into fervent demand from Asian investors.

Several major IPOs are set for later this year, including American International Assurance's (AIA) $10 billion Hong Kong offering and Australia's Resourcehouse plans to raise up to $3 billion.

There were five IPOs that raised just $183 million in the first two months of 2009, when markets were reeling from the financial crisis, according to Thomson Reuters data.

(Editing by Jonathan Hopfner)