UPDATE 1-China South City plans $300-$500 mln HK IPO

(For an expanded IPO diary, please click <HK/IPOMENU) (Combines earlier stories, adds brokerage comment and details)

By Kennix Chim

HONG KONG, June 5 (Reuters) - Logistics and trade centre operator China South City Holdings Ltd aims to raise $300-$500 million from a Hong Kong IPO in the third quarter, sources close to the deal said on Thursday, joining a growing line-up of listing candidates hoping for a revival in demand for new issues.

At least six companies plan to list in Hong Kong by the end of June to raise a combined $1.5 billion. While recent Hong Kong deals have been priced at or near the bottom of their indicated range, companies with strong brands or in unique sectors are expected to generate more robust investor interest.

On Thursday, Chinese hot pot restaurant chain Little Sheep Group Ltd raised $100 million in a Hong Kong initial public offering after it priced its shares in the middle of an indicated range, a source close to the situation said.

The institutional portion of the Little Sheep's offering was more than 10 times covered, the source said.

"Little Sheep's subscription figure is strong compared to recent offerings, because of its well-knwon brand name and wide coverage in China," said Y.K Chan, strategist at Phillip Capital Management.

He said that while a few IPOs will draw solid investor interest, sentiment remains weak due to volatile stock markets. Hong Kong's Hang Seng index .HSI is down almost 13 percent so far this year.

Little Sheep, in which private equity firms 3i Group Plc (III.L: Quote, Profile, Research) and Prax Capital have stakes, priced its shares at HK$3.18 each, within a forecast range of HK$2.68-HK$3.68, in a deal handled by Merrill Lynch MER.N and Deutsche Bank (DBKGn.DE: Quote, Profile, Research).