UPDATE 1-COFCO prices $410 mln spinoff at top - sources

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HONG KONG, March 15 (Reuters) - China Agri-Industries Holdings (0606.HK) and its parent, food processor COFCO International Ltd. (0506.HK), have raised US$410 million after pricing the spinoff at the top of an indicated range, sources close to the deal said on Thursday.

Thanks to investor interest in the budding biofuel sector in energy-hungry China, the deal was more than 500 times subscribed by retail investors, while the institutional tranche was over 100 times covered.

China Agri-Industries, which started investing in biofuel and biochemical business in early 2006, sold 698 million new shares at HK$3.72 apiece, while COFCO sold 163 million old shares in the company at the same price.

The issue price was at the top of a proposed range of HK$3.10 to HK$3.72.

China Agri-Industries is valued at 18 times 2007 earnings, one source said, assuming a 15 percent over-alloment option will be exercised by underwriters BOC International and Goldman Sachs (GS.N).

A trading debut was set for March 21.

Shares in COFCO International had risen 0.7 percent on Thursday morning to HK$6.08, in line with gains in the broader market .HSI.

(US$1=HK$7.8)

(Reporting by Daisy Ku, editing by Anne Marie Roantree; daisy.ku@reuters.com; Reuters Messaging: daisy.ku.reuters.com@reuters.net; +852 2843-6587) Keywords: CHINAAGRI IPO/

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