(Updates with confirmation from securities filing)
By Carolina Mandl and Tatiana Bautzer
SAO PAULO, Oct 24 (Reuters) - Medium-sized retail Brazilian lender Banco BMG SA priced its preferred shares in an initial public offering at 11.60 reais each on Thursday, according to a securities filing on Thursday.
The bank and its shareholders raised 1.6 billion reais ($396 million) in the offering. Reuters reported earlier on Thursday BMG's share pricing.
BMG intends to use the proceeds to launch new products and invest in technology and marketing, it said in the filing.
The pricing came at the bottom of the previously announced range. The company decided to issue only the supplementary allotment, known as greenshoe, raising the initial number of shares by 15%.
With 3.8 million clients, Banco BMG mainly offers credit card payroll loans through more than 600 outlets. Its loan book came in at 10.3 billion reais in June.
Last year, BMG called off its IPO as its valuation did not meet its shareholders' expectations.
Investment banking units of XP Investimentos SA, Itau Unibanco Holding SA, Credit Suisse, Brasil Plural and Banco do Brasil SA managed the offering. (Reporting by Carolina Mandl and Tatiana Bauter Editing by Leslie Adler and Sonya Hepinstall)