UPDATE 1-Georgia's TBC Bank prices $240 million IPO

Fri Jun 6, 2014 4:13am EDT

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LONDON, June 6 (Reuters) - Georgia's TBC Bank set the price for its initial public offering (IPO) of global depositary receipts to be traded in London at $13, valuing the company at about $640 million.

In a statement on Friday the bank said the total size of the transaction was $238.7 million, excluding shares offered as part of an over-allotment option, making it the largest IPO by a Georgian company.

The final price announced before trading began on Friday came in at the bottom of the $13 to $16 price range set in May, but in early trading the price jumped more than 4.5 percent to $13.65.

Global deposotary receipts are used as a way for foreign companies, often in emerging markets, to access the greater liquidity and investor base of the London markets.

They are certificates representing underlying shares in the company and can be traded in London.

The bulk of the deal proceeds go to a group of selling shareholders including the World Bank's International Finance Corporation, the European Bank for Reconstruction and Development, Germany's DEG investment corporation, JPMorgan and investment manager Ashmore.

Proceeds for the bank from the sale of new shares amount to about $96 million, which CEO Vakhtang Butskhrikidze said will put towards expanding its business, focusing on retail banking, microfinance and lending to small and medium sized enterprises.

Established in 1992, TBC has a 33 percent market share of retail deposits in Georgia and is the country's second-largest operator in loans and deposits.

Barclays and UBS acted as joint global coordinators on the sale. (Reporting by Chris Vellacott; Editing by Steve Slater and David Goodman)

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