UPDATE 1-Solargiga cuts IPO price range, seeks up to $264 mln

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

(Adds details, background)

HONG KONG, Jan 17 (Reuters) - Chinese solar wafer maker Solargiga Energy Holdings Ltd lowered the price range for its Hong Kong IPO due to poor market conditions, and now seeks to raise up to about US$264 million, a source close to the deal said on Thursday.

The fundraising target was cut as Hong Kong's main Hang Seng Index .HSI has dropped about 13 percent thus far in 2008 -- jeopardising the ambitions of many IPO hopefuls.

At the same time, shares in the solar technology firm's once high-flying peers such as Yingli Green Energy Co Ltd (YGE.N: Quote, Profile, Research, Stock Buzz) and LDK Solar Hi-Ttech Co (LDK.N: Quote, Profile, Research, Stock Buzz) have also been battered, losing about 31 percent and 27 percent, respectively, in 2008.

Solargiga, which had previously sought as much as US$292 million, is offering 422.7 million shares, or 25 percent of its enlarged share capital, at HK$4.08-HK$4.88 each, compared with an earlier range of HK$4.57-HK$5.38 each, the source said.

The revised price range values Solargiga at 15.4 to 18.4 times forecast 2008 earnings. The institutional order book for the deal has already been filled, the source said.

BNP Paribas (BNPP.PA: Quote, Profile, Research, Stock Buzz) is sponsoring the deal.

(Reporting by Kennix Chim; Editing by Anne Marie Roantree)

(tony.munroe@reuters.com; Reuters Messaging: tony.munroe.reuters.com@reuters.net; +852 2843 6358, Fax +852 2845 0636))