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By Oliver Hirt
ZURICH, May 14 (Reuters) - Swiss biotech company Polyphor will raise 165 million Swiss francs ($165.4 million), including an over-allotment option, after pricing shares in its initial public offering at 38 Swiss francs each, the top end of the indicated range, sources told Reuters on Monday.
The company is due to make its debut on the Swiss stock exchange on Tuesday in an all-primary share offering, the latest in a raft of flotations in Switzerland this year.
Polyphor had said on Friday it was increasing the size of its IPO, citing strong demand for its shares.
It lifted the upsize option from 40 million francs to 55 million francs last week, meaning total proceeds raised would increase to 165 million francs from the previously targeted 150 million francs.
The price range for its shares was narrowed to 35 to 38 per share from an initial range of 30 to 40 francs each.
A spokesman for the company declined to comment on the IPO results.
Polyphor has said it would use the funds to develop Murepavadin, a drug to treat a deadly strain of pneumonia.
The market for Murepavadin is worth up to $3 billion, Polyphor has said.
UBS AG and Deutsche Bank AG acted as joint global coordinators and joint bookrunners and Zuercher Kantonalbank and Cantor Fitzgerald as co-lead managers.
A series of flotations in Switzerland this year has provided the bourse with new entrants.
Ceva Logistics made its debut in May following IPOs by sensor maker Sensiron, medical devices maker Medartis and a listing by social network group ASMALLWORLD in March.
But Chinese conglomerate HNA Group shelved plans to float airline caterer Gategroup and ground services and cargo handling unit Swissport, citing turbulent markets.
$1 = 0.9976 Swiss francs Writing by John Revill, Editing by Michael Shields