(Corrects IPO price in second paragraph to 17.50 Sfr, not 17 Sfr)
ZURICH, June 23 (Reuters) - Switzerland's Glarner Kantonalbank and its main shareholder have raised 56 million Swiss francs ($62.5 million) after the bank's IPO was priced at the bottom of its indicative range.
The government-backed bank, which begins trading on the Swiss bourse on Tuesday, set the price at 17.50 Swiss francs compared with a range of 17 to 21.50 francs. The bank said the offer was oversubscribed several times by both private and institutional investors.
Two thirds of the proceeds will go to the bank, which plans to use the funds to strengthen its capital base. The remaining third will go to the canton of Glarus, which will remain the main shareholder after the IPO with a stake of about 70 percent.
There is a greenshoe option of 450,000 shares which may be exercised and which would bring the sum raised to nearly 64 million francs.
Glarner Kantonalbank is the second regional bank to launch an IPO in Switzerland this year. Thurgauer Kantonalbank made its market debut in April. ($1 = 0.8967 Swiss Francs) (Reporting by Katharina Bart; Editing by Edwina Gibbs)