UPDATE 2-Pou Sheng, Xtep sport retailers launch $784 mln HK IPOs

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

(Adds fund manager comment)

By Kennix Chim

HONG KONG, May 16 (Reuters) - Chinese sportswear retailers Pou Sheng International (Holdings) Ltd and Xtep International Holdings launched marketing roadshows on Friday to raise a combined $784 million in Hong Kong initial public offerings, sources close to the deals said.

Numerous capital-hungry firms are seeking to raise funds in the second quarter, many of them consumer-related companies offering exposure to surging household spending power in China, where retail sales rose 22 percent in April from a year earlier.

Pou Sheng, a spin-off from the world's top sports shoe maker Yue Yuen Industrial (Holdings) Ltd (0551.HK: Quote, Profile, Research, Stock Buzz), plans to raise as much as $396 million in a Hong Kong IPO, by selling 823.4 million shares at HK$2.93-HK$3.75 each, one source said.

Sportswear retailer Xtep International Holdings Ltd, in which U.S. private equity company Carlyle Group [CYL.UL] has a stake, plans to raise as much as $388 million by offering 550 million shares, or 25 percent of its enlarged share capital, at HK$4.05-HK$5.5 each, the sources said.

Investors have been wary when it comes to recent offerings in Hong Kong, with many sticking to tried-and-true industry leaders and shunning market neewcomers.

"We will not suffer any loss even if we miss out on these upcoming IPOs because their scale is small," said Adam Tam, fund manager at Pacific Sun Investment Management.