January 28, 2016 / 9:32 AM / 4 years ago

UPDATE 1-Cigar maker STG to be first Danish IPO since March 2015

(Adds analyst, company quotes)

COPENHAGEN, Jan 28 (Reuters) - Scandinavian Tobacco Company (STG) set an indicative price range on Thursday for its stock market listing of 93-110 Danish crowns per share, valuing the firm at up to 11 billion crowns ($1.6 billion).

The flotation will be the first initial public offering (IPO) in Copenhagen since March 2015 when IT services business NNIT listed on the exchange.

STG IPO-SCANTG.CO will offer up to 40 percent of its share capital. No new shares will be issued so the net proceeds will go to the Augustinus Foundation and the Obel Family Foundation together with Swedish Match.

“Investors have been a little uncertain about the company’s historic growth, and it seems to have pushed the price range down somewhat,” analyst Michael Friis Jorgensen from Alm. Brand Markets said.

The company has played down the impact of proposed tighter regulation of cigars in the United States, its biggest market.

“We have several avenues for growing our business, and by optimising our business, particularly our supply chain,” Chief Executive Niels Frederiksen said in a statement.

The shares are expected to be admitted the Nasdaq Copenhagen exchange no later than Feb. 10.

J.P. Morgan Securities, Deutsche Bank and Nordea Markets have been appointed to manage the IPO.

Carnegie Investment Bank has been appointed co-lead manager while FIH Partners is acting as financial advisor to STG.

$1 = 6.8622 Danish crowns Reporting by Ole Mikkelsen; additional reporting Teis jensen; editing by David Clarke

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