Direct Line IPO order book fully covered - sources

LONDON, Oct 3 (Reuters) - Order books on the London initial public offering of Royal Bank of Scotland's insurance business Direct Line have been covered three days into the company's nine day investor roadshow, sources close to the company said on Wednesday.

RBS, 82 percent government-owned after receiving a bailout during the 2008 financial crisis, was told to sell Direct Line by EU regulators as a condition for taking state aid.

Shares in the sale of up to 33 percent of the company are being offered at 160 pence to 195 pence each.

If priced at 195 pence, the insurer could raise as much as 975 million pounds, in London's biggest initial public offering in over a year.

Order books, which opened on Sept. 28, are due to close on Oct. 10.

RBS and Direct Line declined to comment.

(Reporting by Matt Scuffham and Myles Neligan)

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