December 3, 2013 / 8:48 AM / in 5 years

UPDATE 1-Portugal prices shares in postal privatisation at top of range

* Government-set price range was 4.1-5.52 euros

* Shares to be floated Thursday, nominal value 0.5 euros

* Lisbon already beat privatisation target under bailout (Adds details of offer, privatisation target)

LISBON, Dec 3 (Reuters) - Portugal’s government has set the price in the privatisation of postal service CTT at 5.52 euros a share, at the top of its previously announced range, meaning the state should raise 580 million euros ($786 million) from the stock offering.

The shares will be floated on the Lisbon bourse on Thursday, CTT and state property holding company Parpublica said in a statement.

The privatisation process for a 70 percent stake in CTT, or 105 million shares, was launched in July and is part of a sale of state assets demanded as a condition of the country’s EU/IMF bailout agreed in mid-2011.

“It is expected that the admission to trading on the regulated market Euronext Lisbon of 150 million ordinary and nominative shares with a nominal value of 0.5 euro each, representing the entire share capital of CTT, will occur on 5 December 2013,” CTT and Parpublica said in a joint statement.

Last month, the government set a price range of between 4.1 euros and 5.52 euros per share in the offering for retail and institutional investors.

Retail investors were offered 21 million shares out of a total 105 million on the block, and the securities market regulator has said that demand outstripped supply by 7 times. No numbers were provided for bids by institutional investors.

The government has said it has been encouraged by the privatisation of Britain’s Royal Mail in a similar offering last month and the flotation of Belgium’s bpost in June as strong equity markets have helped revive new listings in Europe this year.

Lisbon has already beaten its bailout target to raise 5.5 billion euros from privatisations by the end of 2013, having pocketed more than 6.4 billion euros from previous direct sales of stakes in power firms EDP and REN, as well as in airport operator ANA.

$1 = 0.7377 euros Reporting by Andrei Khalip; Editing by Mark Potter

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