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UPDATE 1-Skrill sets price range for London listing-sources

Published 03/28/2011, 08:39 AM
Updated 03/28/2011, 08:44 AM

* Online payments firm to offer shares at 235p-335p -sources

* Will sell 80 million sterling of new shares to fund growth -sources

* Joins string of European firms testing IPO market

(Adds detail, background)

By Kylie MacLellan

LONDON, March 28 (Reuters) - British online payments provider Skrill Holdings plans to sell shares for 235-335 pence in its up to 184 million pound ($295 million) London listing, two people close to the deal said.

Skrill, operator of online payments system Moneybookers.com, on Monday joined German engineering group Norma and Russian sugar and pork producer Rusagro in opening the order books on a planned float.

The three are the latest in a string of firms testing investor appetite after a bout of volatility canned two of Europe's biggest listings so far this year.

Any signs of investor demand for new listings will be closely watched, given that commodities giant Glencore looks to be pressing ahead with its own mega-float, expected to raise around $10 billion.

Expectations of a flurry of pre-Easter share offerings were dented earlier this month as volatility in global stock markets spiked on fears over Japan's nuclear crisis and rising unrest in North Africa and the Middle East.

But as markets rebound, many firms are pressing ahead with planned floats seeking to raise a combined total of several billion dollars.

British vacuum technology firm Edwards, Austrian aluminium group AMAG and digital sports media company Perform Group all opened the order books on their share sales last week as several other firms also announced plans to list in April.

Skrill's initial public offering (IPO), which is expected to be completed in the week beginning April 11, will see 80 million pounds of new shares sold alongside 80 million of shares sold by existing investors, the sources said.

There will also be an overallotment option of 15 percent.

Skrill is majority owned by private equity group Investcorp Technology Partners, who will be among those selling shares in the offering, along with management.

The firm will roadshow in London and the United States this week and the rest of Europe next week, one of the sources said.

The company, which has more than 15 million registered users and mainly operates in Europe, has said it hopes the listing will boost the group's profile and help fund its expansion into new products and locations.

Skrill has also said it would consider acquiring internet or mobile-based payment providers, as well as technology businesses which would help expand its product base or geographical reach.

In January, the firm appointed Bob Wigley as chairman ahead of the possible flotation. Wigley, the current chairman of directories group Yell Group, was chairman of Merrill Lynch Europe until January 2009.

Skrill, which delayed its plans to list from last year, grew its revenues to 66.7 million euros in 2010 from 33.8 million euros in 2008, a compound annual growth rate of 40 percent.

Morgan Stanley and Jefferies are running the offering, along with Bank of America Merrill Lynch. ($1=.6243 Pound) (Reporting by Kylie MacLellan; Editing by Steve Slater and Jon Loades-Carter)

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