UPDATE 3-VGP sets IPO price range of 15.25-16.75 euros

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By Emma Davis

Czech real estate developer VGP set the price range for its stock market debut at 15.25-16.75 euros ($22.54-$24.76) per share for a listing that initially aims to raise up to 50 million euros, it said on Tuesday.

It also confirmed that the first trading would take place on Euronext Brussels and in Prague on Dec. 7.

The company scaled back its initial public offering (IPO) from the 150 million euros initially planned, saying it could raise as much as 57.5 million euros, including a 15 percent supplement.

It told reporters in Prague on Monday that turbulent financial markets led it to lower the target amount.

The book building period will start on Wednesday and is expected to close on Dec. 5, with a potential early closing on Nov. 28.

Certain parties related to the founders had irrevocably committed to subscribe to 41.5 million euros of shares. Existing shareholders will have a lock-up period of one year and will maintain a sizeable majority in the company.

Some 40 percent of the shares offered would go to retail investors.

The company's chief executive, Jan Van Geet, said VGP would pay dividends from rental income as soon as possible and foresaw a possible interim dividend on 2009 earnings with a yield of up to five percent.

Van Geet said VGP had signed over 13 million euros of rental agreements this year and he expected that figure to rise to 15 million euros by the end of December.

VGP, whose tenants include Ikea, Siemens and TNT, said it planned to use part of the IPO proceeds to invest in land in the Czech Republic, Germany, Slovakia, Hungary, Romania and the Baltic States and to finish existing construction.

VGP, whose portfolio's fair value was estimated at 202.9 million euros as June, develops commercial and logistics buildings in the Czech Republic and elsewhere in central and eastern Europe.

Belgium's KBC, ING and KBC's Czech unit Patria Finance are arranging the IPO. (Reporting by Emma Davis; editing by Paul Bolding and David Cowell)

Keywords: VGP IPO/

[BRUSSELS/Reuters/Finance.cz]