UPDATE 1-German online car dealer AUTO1 seeks up to 1.8 bln euros from IPO

(Adds CEO comment, guidance from bookrunner)

Jan 25 (Reuters) - German used-car trading platform AUTO1 on Monday set a range of between 32 and 38 euros per share for its initial public offering (IPO), implying that its Frankfurt listing could raise up to 1.8 billion euros ($2.19 billion).

AUTO1 said it would issue 31.25 million new shares, worth at least 1 billion euros, and invest 75% of that into its Autohero brand in a push to become Europe’s leading fully digital car retailer.

The company will use the rest of the proceeds to repay a convertible bond, it said.

Existing shareholders, including Japanese tech investor Softbank’s Vision Fund, which holds a 20% stake, will sell a further 15.625 million shares.

After taking into account the offering of new shares, the flotation could value AUTO1 at up to about 8 billion euros, based on guidance from one of the banks involved in the deal.

Feedback from potential investors has been positive, with firm commitments from two anchor investors for shares worth 300 million euros, said Chief Executive Christian Bertermann.

The subscription period starts on Tuesday and runs until Feb. 2, opening this year’s IPO market in Germany. AUTO1’s first day of trading on the Frankfurt Stock Exchange is scheduled for Feb. 4. ($1 = 0.8212 euros) (Reporting by Zuzanna Szymanska in Gdansk Editing by Edmund Blair and David Goodman )