UPDATE 1-Italy's Moncler set to sell shares at 10.20 euros each - source
* Moncler set to price IPO at top of range - source
* Receives orders worth around 20 bln euros - source
* Shareholders to raise at least 681 million euros
* Institutional tranche subscribed 30 times - source
MILAN, Dec 11 (Reuters) - Moncler , the Italian maker of luxury goose-down jackets, will price its shares at the top of an indicative range after strong global demand, a source close to the deal told Reuters.
Moncler, which is floating at least 27 percent of the company, has received orders worth around 20 billion euros ($27.54 billion) from all over the world, the source added.
"With these numbers it seems to be taken for granted the pricing will be at the top of the range," the source said. The 8.75-10.20 euros price range was set by Moncler two weeks ago.
The listing in Milan will be the biggest by a European luxury company since Prada raised $2.1 billion through a Hong Kong offering in June 2011.
Pricing at the top of the range indicates Moncler's share offer will be worth at least 681 million euros, valuing the company as a whole at up to 2.55 billion euros.
The demand for Moncler contrasts with other European IPO candidates over recent weeks. Italy's M&G Chemicals postponed a planned Hong Kong listing on Monday and freight forwarding company Savino del Bene scrapped a Milan listing on Dec. 5.
Italian leather group Salvatore Ferragamo on the other hand successfully raised 344 million euros in June 2011 through a listing which valued the group at 1.5 billion euros.
"At the moment, the market is saying it values luxury," a Milan-based trader said.
The 80 percent portion of Moncler's IPO reserved for institutional investors was subscribed more than 30 times, the source said. The rest was reserved for retail buyers in Italy and Japan.
"More than half of the requests came from long-only investors who can expect to receive a more than proportional share," the source said.
The size of the offering could rise by as much as 15 percent to around 785 million euros if a greenshoe over-allotment option is exercised. The source said no decision had yet been taken over whether to exercise this option.
Current shareholders headed by French investment firm Eurazeo, alongside private equity group Carlyle and Brands Partners are set to profit from the deal, which is made up entirely of existing shares.
At this stage, there are no new investors with a stake of more than 2 percent in the company, the source said.
Moncler president Remo Ruffini, who bought the brand in 2003 and helped boost annual sales from 45 million euros to 489 million euros in 2012, will be the largest shareholder after the listing, with 32 percent.
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