UPDATE 1-Sinoma plans up to US$538 mln HK IPO

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

(Adds details)

By Kennix Chim

HONG KONG, Dec 3 (Reuters) - China National Materials Co Ltd (Sinoma), the world's largest cement equipment and engineering service provider, plans to raise up to US$538 million in a Hong Kong IPO, according to a term sheet obtained by Reuters.

The company, which will kick off a marketing roadshow on Monday, is offering 931.7 million shares, or 27.15 percent of its enlarged share capital, at a price range of HK$3.2-HK$4.5 each.

Sinoma set its price range at a discount to its peers after several recent Hong Kong market newcomers, such as Sinotrans Shipping Ltd (0368.HK: Quote, Profile, Research, Stock Buzz) and Sinotruk (3808.HK: Quote, Profile, Research, Stock Buzz), made weak debuts as global financial turmoil knocked stock markets.

Chinese refrigerants maker Dongyue Group Ltd, raised US$144 million by pricing its IPO toward the low end of a range, in the latest sign that Hong Kong's once-scorching IPO market has cooled.

Motorbike maker Vietnam Manufacturing & Export Processing (Holdings) Ltd, which planned to raise up to US$135 million in an IPO, had delayed its Hong Kong retail offering, a source familiar with the deal said, adding this was due to a technical reason.

Sinoma's price range represents a price-to-earnings multiple of 15.9 to 22.4 times the syndicate earnings forecast for 2008.