UPDATE 2-Czech miner NWR prices IPO at top of range 13.25 stg

(Adds share move, analyst, free float, background)

By Jan Lopatka

PRAGUE, May 6 (Reuters) - Czech coal miner New World Resources (NWR) NWRW.L (NWRSsp.PR: Quote, Profile, Research) priced an initial public offering at the top of its range on Tuesday, raising 1.1 billion pounds in a heavily oversubscribed issue of new and existing stock.

NWR said the IPO in London, Prague and Warsaw would value the entire company at 3.5 billion pounds, the biggest initial offering so far this year in London and the biggest ever in Prague.

The company said the IPO was priced at 13.25 pounds, at the top of the indicative range of 10.75-13.25 pounds, and was 7.3 times oversubscribed at the top price. Total demand was worth 9.2 billion pounds.

The stock rose as much as 7 percent in London to 14.20 pounds but dropped to 13.80 by 0728 GMT, 4.2 percent above the issue price.

The offer of 83.01 million shares included 13.5 million newly issued stock and represented 31.5 percent of the company. Most of the shares went to institutional investors.

"NWR intends to use the net proceeds of the sale of new A shares principally to fund its capital investment programme and additional growth opportunities, which include further exploration, joint ventures or strategic acquisitions of new and mothballed mines," the company said.

The selling shareholder was RPGI, owned mainly by Czech financier Zdenek Bakala and Crossroads Capital Investments.