UPDATE 2-Segezha raises $400 mln at Moscow debut, valuing company at $1.7 bln

(Adds analyst comment, writes through)

MOSCOW, April 28 (Reuters) - Forestry group Segezha raised 30 billion roubles ($401.8 million) at its Moscow debut on Wednesday, with the second Russian company to go public this year achieving a market capitalisation of 125.5 billion roubles.

Retailer Fix Price raised $2 billion last month in Russia’s largest initial public offering since the West imposed sanctions in 2014, and online retailer Ozon staged a successful Nasdaq debut late last year, with analysts expecting more listings.

Segezha, controlled by conglomerate Sistema, tabled an offering consisting of 3,750,000,000 new shares, representing 31.4% of Segezha’s current share capital. Sistema will retain a 73.7% ownership stake, with a free float of 23.9% expected.

By 1349 GMT, the shares were trading just below the final offer price of 8 roubles, which was towards the lower end of a target price range of 7.75-10.25 roubles per share set last week.

The order book was two times oversubscribed, Segezha President Mikhail Shamolin told a trading ceremony at the Moscow Exchange, with around 50% of the IPO purchased by foreign institutional investors, including from Scandinavia, the United Kingdom and the United States.

A further 10% was purchased by retail investors, he added.

“Segezha has a growth story that investors received well,” Fedor Tregubenko, UBS Group country head in Russia, told Reuters.

“This placement is the latest positive signal for the opening of the IPO market for Russian issuers. The demand was high and was coming from different types of investors from all over the world.”

Sistema President Vladimir Chirakhov named agriculture holding company Steppe, the Medsi chain of medical clinics and pharmaceutical holding company Binnopharm as its units now best suited to an IPO, but declined to say which would be next. ($1 = 74.6580 roubles) (Editing by Barbara Lewis, Kirsten Donovan)