UPDATE 1-Spain's Prosegur seeks to raise up to 1 bln euros in IPO of cash unit

(Adds details on book building, coordinators, bookrunners, adviser)

MADRID, March 2 (Reuters) - Spanish security services company Prosegur set a price range on Thursday to list up to 27.5 percent of its cash-in-transit unit, valuing Prosegur Cash at up to 3.5 billion euros ($3.7 billion) in Spain’s first stock market listing of 2017.

Prosegur Cash, whose bright yellow armoured vans delivering bank notes to automated teller machines are a familiar sight in Spain, plans to price at between 1.95 euros and 2.35 euros per share in a March 17 listing, the prospectus said.

Prosegur aims to use up to 400 million euros of proceeds from the listing to grow its alarms and security business and return cash to shareholders.

Prosegur would receive 806.3 million euros from the listing at the mid-point of the offer range without exercise of the over-allotment option, the prospectus said. Book-building will start on March 3 with an aim to list on March 17.

Joint global coordinators and joint bookrunners on the deal are BBVA, Santander, Citigroup and Goldman Sachs. Deutsche, HSBC and JB Capital Markets are also acting as bookrunners.

Lazard is acting as an independent adviser. ($1 = 0.9519 euros) (Reporting by Sonya Dowsett)