SAO PAULO, Feb 4 (Reuters) - Brazilian sugar and ethanol producer Jalles Machado SA priced its initial public offering in Sao Paulo at 8.30 reais per share, well below its target range of 10.35 reais to 12.95 reais, according to data released by Brazil’s securities regulator on Thursday. The IPO raised 741.5 million reais ($137 million), according to the data. In its preliminary prospectus, Jalles said it planned to use the proceeds of the IPO to increase sugarcane production at its two mills in the center-west Brazilian state of Goias and to purchase a third mill.