UPDATE 1-EFG puts $350 million tag on unit for sale

* IPO part of EFG International's cost-cutting plans

* Pricing: 40-50 Sfr per registered share

* EFG Intl. will see its stake in unit cut due to IPO

(Adds further details on price, capital strength)

By Martin de Sa'Pinto ZURICH, Oct 8 (Reuters) - Swiss bank EFG International's

investment arm EFG Financial Products priced its initial public share offer at between 40 and 50 Swiss francs a share on Monday, valuing the business at 267 to 333 million Swiss francs ($288-359 million).

EFG is undergoing a radical overhaul under chief executive John Williamson, and this year has axed offices in the Swiss cities of Sion and Lugano, sold its fund administration business to Credit Agricole arm CAECIS, and sold EFG Bank Denmark to SEB Wealth Management .

EFG will sell up to 1.56 million shares in the Financial Products business, including an overallotment option that can be exercised within 30 days of the unit's first day of trading on the Swiss stock exchange, raising up to 78 million francs.

EFG International said the sale would push its capital adequacy ratio up to around 17 percent of assets from 15.1 percent at the end of June.

After completion of the offering EFG International will hold a stake of not less than 20 percent in EFG Financial Products, the bank said, reducing its stake from a current holding of around 58 percent, with management and employees the other shareholders.

Trading in the shares on the Swiss bourse SIX is expected to begin on Oct. 19. ($1=0.9284 Swiss francs)

(Reporting by Catherine Bosley; Editing by Muralikumar Anantharaman and Greg Mahlich)

((catherine.bosley@thomsonreuters.com)(+41 58 306 7461))

Keywords: EFG IPO/