UPDATE 1-Pirelli deflates peak IPO valuation by 19 pct - document

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MILAN, Sept 27 (Reuters) - Italian tyremaker Pirelli has lowered the maximum valuation it can achieve in its initial public offering by 19 percent to 6.7 billion euros ($7.9 billion), a notice to investors reviewed by Reuters showed on Wednesday.

Pirelli now plans to price its shares at between 6.5 and 6.7 euros each, compared with an initial guidance of between 6.3 and 8.30 euros a share.

The IPO, in which Pirelli is offering up to 40 percent of its capital, is fully covered within the tightened price range and books are expected to close on Thursday at 1200 GMT, the memo showed. The final price is expected to be announced on Friday.

At the narrowed range, Pirelli is set to raise up to 2.68 billion euros through the IPO, including the additional greenshoe option.

Established in 1872 and one of Italy's best-known corporate names, Pirelli is expected to return to the Milan stock exchange on Oct. 4.

The world's fifth-largest tyremaker had traded on the same exchange since 1922 before it was de-listed in 2015 following a takeover by China National Chemical Corp (ChemChina).

State-owned ChemChina took over Pirelli two years ago by acquiring a 65 percent stake in the holding company controlling the maker of tires for Formula One motor racing teams and upmarket brands such as Mercedes, Audi and BMW .

The relisting will test demand for a streamlined firm that focuses on high-end consumer tires after its less profitable truck and industrial tire business was folded into a unit of ChemChina. ($1 = 0.8510 euros) (Writing by Agnieszka Flak; Editing by Keith Weir)