UPDATE 2-Sinoma jumps in HK IPO debut; BYD Electronic edges up

(For an expanded IPO diary, please click <HK/IPOMENU>) (Updates closing prices)

By Kennix Chim

HONG KONG, Dec 20 (Reuters) - Shares in Sinoma (1893.HK), the world's largest cement engineering services firm, jumped 35 percent on their market debut on Thursday as investors sought exposure to China's strong growth and building boom.

But fellow debutante, Chinese handset components maker BYD Electronic (International) Co Ltd (0285.HK), lagged, gaining just 2.3 percent in a further sign that investors have become more choosy after a series of weak first-day performances.

Several recent Hong Kong IPOs have slid on their debuts amid volatile markets due to worries about the U.S. economy and monetary tightening in China.

"Chinese consumption and infrastructure players act as a shelter to investors, as Beijing enhances tightening measures," said Steven Leung, director of institutional sales at UOB-Kay Hian.

On Tuesday, Chinese internet content provider Pacific Online Ltd (0543.HK), which raised US$121 million in an IPO, slid 19.4 percent, becoming the worst-performing debutante this year.

Shares in BYD Electronic, which is a spin-off from Chinese mobile phone battery maker BYD Co (1211.HK), fell as low as HK$10.68 before edging up to HK$11.0 at the market close. The company raised US$758 million after pricing its IPO at HK$10.75 per share, which was at the bottom of its indicated range.

Leung said BYD Electronic's debut topped market expectations, given the deal was not fully covered in its Hong Kong retail offering.

The firm attracted orders for just 40 percent of the shares on offer to retail investors.

Its closing price values the company at 13.8 times the 2008 earnings forecast of its underwriter. By comparison, rival Foxconn International (2038.HK) trades at 14.5 times 2008 forecast earnings.

Shares in China National Materials Company Ltd (Sinoma) ended up 35 percent at HK$6.07. The firm raised US$538 million after pricing its IPO at HK$4.50 each, which was at the top of its indicated range.

Sinoma attracted orders for 283 times the shares on offer to Hong Kong retail investors.

Fund managers said China's roughly 11 percent economic growth and heavy investment in fixed assets had stimulated expansion of the cement engineering industry.

Shares in China Railway Group (0390.HK), the world's third-largest construction contractor, which raised a combined US$5.5 billion in Hong Kong and Shanghai, have jumped 55 percent since they listed in Hong Kong on Dec. 7.

UBS (UBSN.VX) (UBS.N) sponsored BYD Electronic and Sinoma, while BOC International also handled Sinoma's deal.