UPDATE 1-Fabrinet prices IPO below range-underwriter

* Prices at $10/share vs $12-$14/share-underwriter

* Sells 8.5 mln shares, raises about $85 mln-underwriter

NEW YORK, June 24 (Reuters) - Precision manufacturer Fabrinet (FN.N) priced shares in its initial public offering below the expected range on Thursday, according to an underwriter.

The Cayman Islands-based company, which has facilities in China, Thailand and New Jersey, makes parts of optical communication systems, as well as industrial lasers and sensors, sold 8.5 million shares for $10 each, raising about $85 million.

It had planned to sell 8.5 million shares for $12 to $14 each.

Fabrinet posted net income of $13.5 million on revenue of $136.9 million for the quarter ended March 26.

Underwriters were led by Morgan Stanley and Deutsche Bank Securities. (Reporting by Clare Baldwin; Editing by Gary Hill)