UPDATE 1-Textile firm Pegas plans IPO in Prague, Warsaw

(Adds background, quote from statement)

PRAGUE, Nov 27 (Reuters) - Luxembourg-registered textile maker Pegas Nonwovens, producing in the Czech Republic, is planning an initial public offering (IPO) on the Prague and Warsaw bourses in the coming weeks, the firm said on Monday.

The company, supplying to manufacturers of diapers and other hygiene products, said in a statement that it wanted to offer new stock as well as shares held by its current majority owner, private investment fund Pamplona.

The firm's media representative Vladimir Bystrov told Reuters Pamplona would keep majority control after the planned IPO but he declined to give further details about the share offering.

If all goes as planned Pegas said trading in its stock could start at the end of this year or at the beginning of 2007.

The share prospectus is due for release around Dec. 4.

"We are convinced that the transaction will enable us to develop and grow further, and strengthen our position as a technology leader in our modern and fast-developing sector," Chief Executive Milos Bogdan said in the statement.

The firm, founded in 1990, said it was the second biggest European maker of non-woven textiles with about an 11 percent share of the European market in June.

Global co-ordinator and bookrunner for the IPO is ING Bank in London. ((Reporting by Marek Petrus, editing by Greg Mahlich;

Reuters Messaging: rm://marek.petrus.reuters.com@reuters.net;

e-mail: prague.newsroom@reuters.com/marek.petrus@reuters.com;

tel: +420 224 190 477))

Keywords: CZECH PEGAS/

Keywords: CZECH PEGAS/