UPDATE 2-ECM Real Estate plans Prague IPO to fund expansion

(Adds quotes for CEO interview, details, background)

By Marek Petrus

PRAGUE, Nov 14 (Reuters) - Luxembourg-registered property developer ECM Real Estate Investments is looking to publish the indicative price range for a planned initial public offering (IPO) of its shares on the Prague bourse by early next month, ECM's head said on Tuesday.

Milan Janku, chief executive officer at ECM, told Reuters in an interview that he hopes the share offering -- only the second IPO ever on the Prague exchange -- will boost the firm's capital to aid expansion plans in the Czech Republic and Russia.

"Within 10 to 14 days we will know more, both from the point of view of the size of the issue and the valuation of the company ... Consequently, some valuation range will be created and presented to potential investors," he said in his first interview since announcing the IPO plan earlier in the day.

Janku declined to say how many shares he was planning to offer in the IPO, and said he wanted to keep majority control over the company, which he fully owns.

He said the IPO is aimed at both domestic and foreign institutional investors, as well as Czech retail investors.

"In this offering, we are aiming for a primary increase in the basic capital," Janku said.

The sole global coordinator is CA IB, an investment banking unit of Unicredit Group <CRDI.MI>, and Austria's Erste Bank <ERST.VI> is co-lead manager.

ECM, which is most active in the Czech Republic, started its Czech business in 1991 and had grown to become one of the biggest property developers in the country.

It said it has completed 10 projects and is currently either planning or completing 15 new projects in the Czech Republic and Russia. This includes a plan to spend 100 million euros ($128.6 million) on a shopping mall in the Russian city of Ryazan, 180km southeast of the capital Moscow.

The first and last company to ever go public on the Prague Stock Exchange was drug maker Zentiva <ZNTVsp.PR> in 2004.

Two firms -- real estate company Orco <ORCO.PA> <ORCOsp.PR> and media operator CME <CETV.O> <CETVsp.PR> -- listed shares in Prague alongside their home markets.

Orco's success, whose shares have more than doubled in price since it joined the bourse in February 2005, and growing investor interest in the booming property sector has led to several real estate firms to consider IPOs.

"The liquidity on the (Prague bourse) is focusing on several shares, which I think is very attractive for new issuers and I hope that it will also be attractive for us," Janku said. ((Reporting by Marek Petrus, writing by Alan Crosby;

editing by Paul Gallagher;

prague.newsroom@reuters.com;

Reuters Messaging: alan.crosby.reuters.com@reuters.net;

tel: +420 224 190 477))

Keywords: PROPERTY CZECH ECM