UPDATE 1-Indicative price in Pegas IPO 21.5-27 euros-source

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PRAGUE, Dec 5 (Reuters) - The indicative price range for an initial public offering of shares in artificial fabrics maker Pegas Nonwovens is 21.5 to 27 euros per share, a market source said on Tuesday.

That would value the 2.02 million new shares on offer at 43.4 to 54.5 million euros and the entire offering of new and existing shares at 113.6 to 142.7 million euros, including an overallotment option.

The existing shares, up to 2.575 million plus 0.689 million in an over-allotment option, are being offered by private equity fund Pamplona Capital Partners I, which owns 97.5 percent of Pegas.

The indicative range would put company's total market capitalisation at 202.9 million euros to 254.9 million.

Pegas is the second largest European manufacturer of non-woven textiles, used in products such as nappies, after Fiberweb <FWEB.L>.

A second market source also said the price indication given during a road show was "in the 20s" range.

The company said in a share prospectus on Monday the maximum price would not exceed 50 euros per share. But at the same time the prospectus said the company aimed to raise gross 50 million euros from the new shares, indicating price around 25 euros per share.

If the issue is fully subscribed, the stock's free float could be up to 56 percent after the market debut in Prague and Warsaw, expected around Dec. 21.

Conditional trading in Prague may start on Dec. 15, the prospectus on the offering issue released on Monday said.

The prospectus said the proceeds would be partly used to repay debt.

ING is the global coordinator and bookrunner of the issue.

Current shareholders, including the management, and the company have agreed on an 180-day lock-up preventing them from selling their shares. ((Reporting by Jan Korselt, writing by Jan Lopatka, editing by David Holmes; prague.newsroom@reuters.com; Reuters Messaging: jan.lopatka.reuters.com@reuters.net; +420-224 190 474))

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Keywords: PEGAS IPO/