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UPDATE 1-Russia's Lenta sets price for London IPO, valued around $4bln

MOSCOW, Feb 28 (Reuters) - Russian hypermarket chain Lenta , part-owned by U.S. private equity firm TPG, on Friday set its planned London initial public offering at the lower end of a range netting around $1 billion for selling shareholders.

Lenta is among a number of retail companies hoping to tap into demand from foreign investors for stakes in consumer-oriented businesses in Russia.

Other consumer-focused IPOs are expected such as children's goods retailer Detsky Mir, owned by oil-to-telecoms conglomerate Sistema, corporate and individual loans bank Credit Bank of Moscow and German retailer Metro AG's Russian cash-and-carry business.

Lenta said the total size of the offering is $952 million, or $1.1 billion if its over-allotment option is exercised in full. It will give the company a market value of $4.3 billion.

The company set a price of $10 per global depositary receipt (GDR), at the lower end of a range of $9.5-$11.5. One share is equivalent to five GDRs.

TPG, which owns a 49.8 percent stake, will sell 9.6 million shares - worth around $480 million at the offer price - to reduce its stake to around 39 percent.

TPG and VTB took stakes in 2009 and two years later bought up U.S.-born entrepreneur August Meyer's 41 percent stake following an acrimonious dispute over the company's management.

The European Bank for Reconstruction and Development, which holds a 21.5 percent stake, will sell 4.1 million shares - or around $205 million.

Russian bank VTB, which owns 11.7 percent, will sell 2.3 million shares - worth around $115 million.

Conditional dealings in London will start today with unconditional trading to start on Wednesday. Trading in Moscow will start the following day.