UPDATE 2-Ukraine poultry firm MHP valued at $1.7 bln in IPO

(Adds price range, CEO quote, expansion strategy)

By Maria Kiselyova

MOSCOW, May 9 (Reuters) - Mironovskiy Hleboproduct (MHP) (MHPCq.L: Quote, Profile, Research), Ukraine's biggest poultry producer, plans to raise about $322.5 million in a $1.7 billion London flotation, aiming to use the funds to expand its production of high-priced grain.

The company said in a statement on Friday it had priced the IPO at $15 per global depositary receipt (GDR), close to the lower end of a $14.0-$18.50 per share price range. Each GDR represents one ordinary share.

"We are delighted to have priced the IPO and with the prospect of being listed on the London Stock Exchange. We have been very encouraged by investor appetite for our shares despite the difficult stock market conditions," Chief Executive Officer Yuriy Kosyuk said in the statement.

The offering comprises 10.75 million existing ordinary shares in the form of GDRs, offered by WTI Trading Ltd (WTI), and 10.75 million new GDRs, together representing around 19.41 percent of MHP's increased share capital.

WTI has granted an over-allotment option to the joint bookrunners -- Morgan Stanley (MS.N: Quote, Profile, Research) and UBS (UBSN.VX: Quote, Profile, Research) -- to purchase or procure purchasers for up to 3.225 million additional existing ordinary shares in the form of GDRs.

If the option is exercised in full, the offering will equal around 22.32 percent of its share capital, MHP said, and IPO proceeds will be around $371 million, based on the same price.

Unconditional trade in MHP's shares on the London Stock Exchange is expected to start on May 15.