* OVHcloud sets IPO price at 18.50-20 euros per share * Eyes valuation of 3.5 to 3.74 bln euros * Seeks to raise 350 mln euros vs up to 400 mln previously (Updates with quotes from call, market value) PARIS, Oct 5 (Reuters) - OVHcloud, touted by French politicians as a potential alternative to U.S. cloud services firms, has cut the amount of money it plans to raise in its stock market debut to 350 million euros ($406 million) amid signs of a faltering IPO market. The company, which announced in September it planned to raise up to 400 million euros in its initial public offering (IPO), on Tuesday set a price range of 18.50-20 euros per share for the flotation, valuing it at 3.5-3.74 billion euros. Finance chief Yann Leca said the new sum was “more than enough” to finance OVHcloud’s growth plans until 2025. He also highlighted the company had recently received 58 million euros from its insurance companies after a fire at one of its data centres in Strasbourg in March. “Regardless of market conditions, it seemed desirable and preferable to launch the operation at this time,” CEO Michel Paulin told reporters. As well as the issue of new shares, investors such as the Klaba family, which helped set up the company, will sell some existing shares, raising around 50 million euros. Initial trading in the stock is expected to start on Oct. 15, with a formal market debut on Oct. 19. After a flurry of flotations this year, France’s IPO market was dealt a blow last week when healthcare property group Icade Santé delayed its debut, citing volatile market conditions. Leca said OVHcloud did not rule out returning to the market for additional funds in the future. OVHcloud is the biggest European-based cloud services provider and is seen by some politicians as a potential alternative to U.S. giants Amazon Web Services, Microsoft’s Azure and Google Cloud, which dominate the market. However, the company has so far lacked the scale and financial clout to dent their market share. President Emmanuel Macron has been keen to promote France’s tech industry, and the Paris stock market has seen several flotations from the sector recently, with cybersecurity company Exclusive Networks listing last month.