UPDATE 1-Scorpio Tankers prices below range - underwriter

* Prices at $13/shr vs $14-$16 range-underwriter

* Sells 12.5 mln shares, raises $162.5 mln-underwriter

NEW YORK, March 30 (Reuters) - Crude oil and petroleum transporter Scorpio Tankers Inc (STNG.N) priced shares in its initial public offering below the expected range on Tuesday, according to an underwriter.

The company sold 12.5 million shares for $13 each, raising about $162.5 million. It had planned to sell 12.5 million shares for $14 to $16 each.

Scorpio, incorporated in the Marshall Islands and headquartered in Monaco, owns three ships.

The company is profitable but its net income slipped 85 percent to $1.7 million in the nine months ended Sept. 30. Vessel revenue fell 25 percent to $21.8 million.

Underwriters were led by Morgan Stanley (MS.N) and Dahlman Rose & Company. The company is expected to begin trading on the New York Stock Exchange on Wednesday under the symbol "STNG." (Reporting by Clare Baldwin; additional reporting by Elinor Comlay; Editing by Gary Hill, Bernard Orr)