UPDATE 1-Xtep falls 12 pct in lacklustre Hong Kong debut
ju4 wa4i dia4n zo1ng he2 ba4o da4o :\n  (For an expanded IPO diary, please click <HK/IPOMENU>)\n(Adds chairman's quote, updates shares price and details)\nBy Kennix Chim and Donny Kwok\nHONG KONG, June 3 (Reuters) - Shares in Chinese sportswear\nretailer Xtep International Holdings Ltd <1368.HK> fell 12\npercent in their market debut on Tuesday after the company raised\n$286 million in a Hong Kong initial public offering.\nThe lacklustre debut is expected to curb enthusiasm for other\nupcoming issues, with at least six companies looking to list in\nHong Kong by the end of June to raise a combined $1.5 billion.\nShares in Xtep opened at HK$3.79 and closed the morning\nsession at HK$3.57, down from an IPO price of HK$4.05 per share,\nwhich was at the bottom of an indicated range.\nHong Kong's Hang Seng Index <.HSI> dropped 2.19 percent on\nTuesday morning, but has climbed about 15 percent since it hit a\nseven-month low in March when it was pulled lower by a global\ncredit crunch and tanking mainland China shares.\nXtep's Chairman Ding Shui-po told Reuters in an interview on\nTuesday that the firm aimed to buy an international sportswear\nbrand, although he gave no time frame.\n"Our multi-brand strategy has allowed us to segment different\nmarkets, with different customer groups. We plan to buy a new\nbrand, which should suit Chinese people's style and have synergy\nwith the firm," said Ding.\nXtep, which makes and distributes sports shoes and apparel in\nChina, has its own brands "Xtep" and "Koling", while Disney Sport\nproducts have been licensed to the firm since Nov. 2006.\nThe Xtep brand targets the mass market in China and was\nlaunched in 2002.\nKoling, which targets the high end market and returned to a\nprofit for the first five months of this year, is expected to\naccount for 1 percent of the group's revenue this year, Ding\nsaid.\nXtep's midday share price values the company at 15 times\nprospective 2008 earnings forecast by sponsor JP Morgan <JPM.N>.\nSports goods maker Nike Inc <NKE.N> and Adidas <ADSG.DE>\ntrade at 14 to 19 times forecast 2008 earnings, while China's top\nsportswear retailer Li Ning Co Ltd <2331.HK> and China Dongxiang\n(Group) Co Ltd <3818.HK>, which licences Kappa-branded sportswear\nin China, trade at 21 times and 30 times, respectively.\nXtep, in which U.S. private equity company Carlyle Group\n[CYL.UL] has 7.2 percent stake of the firm, sold 550 million\nshares, or 25 percent of its enlarged share capital, in a deal\nhandled by JP Morganand UBS <UBSN.VX> <UBS.N>.\nThe firm plans to use about HK$588 million ($75.4 million),\nor 26 percent of total proceeds to acquire brands.\nDing said Carlyle Group would advise on the firm's\nacquisition opportunities, and was not just an investment holder\nof the firm.\n(US$1=HK$7.8)\n(Reporting by Kennix Chim and Donny Kwok; Editing by Anne\nMarie Roantree)\n((kennix.chim@thomsonreuters.com; 852 2843 6313; Reuters\nMessaging: kennix.chim.reuters.com@reuters.net))\nKeywords: XTEP IPO/\nKeywords: XTEP IPO/