UPDATE 2-Three IPOs to raise $785 mln in Hong Kong

(For an expanded IPO diary, please click <HK/IPOMENU>) (Adds comment and details)

By Kennix Chim

HONG KONG, Nov 26 (Reuters) - Taiwan food and drink maker Uni-President China Holdings Ltd and two Chinese firms raising a combined US$785 million in Hong Kong IPOs kicked off marketing roadshows on Monday, navigating volatile stock markets that have punished recent newcomers.

Uni-President China, a spinoff from leading Taiwan food conglomerate Uni-President Enterprises (1216.TW), joins several Taiwan companies that have chosen to list their Chinese subsidiaries in Hong Kong to get around Taiwan's ban on companies putting more than 40 percent of their capital into the mainland.

The company, which has narrowed its losses by restructuring its sales force and pitching its instant noodles at the higher end of the market, plans to raise up to US$529 million in its initial public offering by selling 881.7 million shares at between HK$3.75-4.68 each.

The company will use roughly a third of the proceeds for capital expenditure, another third for sales and marketing and the rest to build up its business in China.

Recent Hong Kong listings by Taiwan companies have not performed well in the secondary market. Shares in Chinese meat processor DaChan Food Asia (3999.HK), a unit of Great Wall Enterprise (Taiwan) Co (1210.TW), have fallen 23 percent since its listing.

Shoe maker Stella International's (1836.HK) stock has risen a mere 2.6 percent since its July float.

"Investors are still cautious about upcoming IPOs, as recent debutants were poor performers and the market is very volatile," said Y.K. Chan, a strategist at Phillip Capital Management.

Hong Kong's Hang Seng index .HSI has seen hefty price swings recently, and has fallen around 12 percent so far this month.

Shares in Sinotrans Shipping Ltd (0368.HK) lost 13 percent in their first day of trading last week, the worst day-one performance in Hong Kong this year.

CHINA DRIVE

Uni-President has been aggressively expanding its presence in mainland China, where it competes against the world's top soft-drink makers Coca-Cola Co (KO.N) and Pepsico Inc (PEP.N) and others such as Taiwan-invested Tingyi.

"Uni-President China's returns still lag its major competitors, mainly because of problems at its instant noodles division and less efficient working capital management," UBS said in pre-IPO report.

Of the shares offered, 60 percent are new and the rest are existing shares, according to a term sheet obtained by Reuters. UBS (UBSN.VX) and Morgan Stanley (MS.N) are handling the deal.

The indicative price range represents a price-to-earnings multiple of 20 to 25 times next year's earnings. This compares with its rival Tingyi (0322.HK), which trades at 35.7 times profit, and Huiyuan Juice (1886.HK) at 25.7 times.