UPDATE 1-Merrion sees IPO of 4 mln ADS at $10-$12 each

Tue Sep 4, 2007 7:41am EDT

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Sept 4 (Reuters) - Ireland's Merrion Pharmaceuticals Ltd on Tuesday filed for an initial public offering of 4 million American Depositary Shares or common shares, to raise up to $55.2 million.

The company expects the IPO to be priced between $10 and $12 per ADS and between 7.41 euros and 8.91 euros per share.

Punk, Ziegel & Co, Goodbody Stockbrokers and Stanford Group Co were underwriting the IPO, the company said in an amended filing with the U.S. Securities and Exchange Commission.

The Dublin-based company said it has given underwriters a 30-day option to purchase upto an additional 600,000 ADS or common shares to cover over allotments.

Merrion said it expects net proceeds of about $37.6 million, assuming the mid-point of the estimated price range. It plans to use majority of the proceeds to fund clinical trials, preclinical testing and other research and development activities.

The company, which applied to have its ADS listed on the Nasdaq under the symbol "MERR," said it posted a net loss of $5.4 million on gross revenue of $17,929 for the six-month period ended June 30. (Reporting by Savitha Kalyanaraman in Bangalore)