* Shares jump despite broader market's 3.3 pct fall
* Raised more than originally planned in $705 mln IPO
* Overall investor sentiment still seen weak - analysts
* New China Life to set price range for Shanghai IPO on Wed
(Updates with closing price, analyst comments)
By Melanie Lee
SHANGHAI, Nov 30 Shares of China's Jiangsu
Phoenix Publishing & Media Corp Ltd surged 35
percent on its Shanghai debut on Wednesday after a $705 million
IPO as optimism about the sector outweighed weakness in the
Jiangsu Phoenix's strong debut, analysts said, did not
necessarily point to a recovery in the overall market sentiment
and would not rub off on New China Life Insurance's Shanghai
initial public offering.
The country's third-largest insurer will set an indicative
price range for the Shanghai portion of its Shanghai-Hong Kong
dual listing later on Wednesday.
"Current market sentiment is generally not good for IPOs,"
said Zeng Sufen, analyst at Industrial Securities.
"I don't expect to see keen demand for New China Life shares
as the industry may suffer from a volatile market and slowing
premium growth next year."
IPOs on the mainland market have been dominated by smaller
deals so far this year, although a slew of large ones are
expected to be launched within the coming months.
A-share turnover on the Shanghai bourse has steadily
declined in the last few weeks, hitting its lowest level of the
year last week. Market watchers attribute the poor appetite
among investors largely to an uncertain macroeconomic
environment globally and in China.
However, such worries seemed to scarcely bother investors
who flocked to shares of Jiangsu Phoenix, one of the country's
biggest publishers, which raised 4.48 billion yuan through its
IPO, much more than it had initially planned.
Its shares closed at 11.87 yuan a piece, up 35 percent
compared with the IPO price of 8.8 yuan. It gained as much as 47
percent, although the market benchmark Shanghai Composite
fell 3.3 percent, the biggest one-day percentage fall in
nearly four months.
"This company should benefit from an emphasis on cultural
industries that the government announced recently," said Chen
Yi, an analyst at Xiangcai Securities in Shanghai.
"I think it's a good investment in the longer run and would
represent good value at about 9 yuan, but right now, I think
it's too highly priced and would actually advise clients to sell
into strength," Chen said.
Jiangsu Phoenix had said in its draft prospectus it planned
to raise 2.76 billion yuan to fund an expansion of its sales
network, book publishing and e-commerce.
At its IPO price, Jiangsu Phoenix would be valued at 50.7
times its 2010 earnings, it said in a filing earlier in the
month. Its listed peers currently trade around 34 times
historical earnings, according to the statement.
The firm competes with China South Publishing & Media Group
Last month, Sinohydro Group, which built the
Three Gorges Dam, rose 17 percent in its Shanghai debut after
raising $2.1 billion in the mainland's largest IPO this year.
Several state-owned media companies, including the website
of the People's Daily, are planning to float IPOs to raise funds
for new projects, local media reported earlier this year.
China International Capital Corp was the sole underwriter of
the Jiangsu Phoenix IPO.
(Additional reporting by Samuel Shen, and Clement Tan in Hong
Kong; Editing by Kazunori Takada and Muralikumar Anantharaman)