RPT-UPDATE 1-Australia retailer Kathmandu IPO priced at low end

* Prices at A$1.70, near the bottom of the band

* Raises A$340 mln

* To start trading Nov 13

By Denny Thomas

SYDNEY, Nov 11 - Australasian retailer Kathmandu Holdings Ltd <KMD.AX> raised A$340 million in an IPO on Wednesday, selling shares near bottom end an indicative range, in an another sign that caution lingers over a fragile recovery in the IPO markets.

The outdoor equipment chain's pricing follows department store Myer Holdings Ltd's <MYR.AX> disappointing debut last week, and could be a warning to other private equity floats waiting in the wings.

"We bid right down towards the low end thinking that it shows reasonable value down there," said Noel Webster, a portfolio manager at BT Investment Management.

Kathmandu's private equity owners Goldman Sachs JB Were and Quadrant Private Equity decided to sell their entire stake in the company, after buying the retailer for NZ$275 million ($204 million), including debt, in 2006.

The owners generated a 3-½ times return on their investment, a spokeswoman for Kathmandu said.

Kathmandu set the final IPO price at A$1.70 each, near the bottom end of an indicative range of A$1.65-A$1.90 a share. Kathmandu, which lists on Nov 13 in Australia and New Zealand, will trade under the ticker KMD.

"We could have got a higher price, but we wanted to ensure after-market support," the spokeswoman said, adding that the offer generated demand for about A$1 billion.

Last week, Myer tumbled 9 percent on its trading debut after a $2 billion IPO.

Founded in New Zealand in 1987 by mountaineer Jan Cameron, Kathmandu has 82 stores in Australia, New Zealand and the UK selling everything from tents to trekking boots and backpacks.