UPDATE 1-MegaFon starts IPO roadshow seeks $1.7-$2.3 bln

MOSCOW, Nov 15 (Reuters) - Russia's No. 2 mobile phone operator MegaFon said on Thursday it aims to raise between $1.7 billion and $2.3 billion in an initial public offering in London and Moscow, as it kicked off an investor roadshow.

The float by MegaFon, controlled by Russia's richest man Alisher Usmanov, could rank as the biggest by a Russian company since Internet search firm Yandex raised $1.4 billion when it floated in New York in May 2011.

MegaFon announced a $20 to $25 a share price range for the IPO, valuing the company at $11.2 billion to $14 billion.

The company is starting the roadshow in New York, two sources familiar with the matter said.

It aims to raise a minimum of $1.7 billion and a maximum of $2.3 billion if it prices at the top of the range and an over-allotment option of 10 percent, in which banks running the deal can acquire shares, is exercised.

Sources previously said the IPO was expected to take place in late November or early December and raise around $2 billion, with shareholder TeliaSonera reducing its stake and MegaFon also selling treasury stock to pay down debts.

Institutional bookbuilding and the roadshow are expected to close on Nov. 27 with pricing, allocations and dealings in the shares starting the following day.