MOSCOW (Reuters) - Russia’s Renaissance Insurance Group said on Wednesday it was offering shares in a Moscow initial public offering (IPO) at 120 roubles ($1.69) per one ordinary share, raising $250 million, below its initial targets. Sources have told Reuters Renaissance Insurance Group would reduce the size of its IPO to $250 million from an initial $290 million, selling only new shares plus an over-allotment option. “Up to 162,000,000 Ordinary Shares will be sold in the Offering, including 147,272,727 new Ordinary Shares raising 17.7 billion roubles (around $250 million) in gross proceeds and up to 14,727,273 existing Ordinary Shares that may be sold under the over-allotment option,” the company said in a statement. The group has covered its IPO book at the lower end of the indicative price range, which had been initially set at 120 to 135 roubles ($1.69-1.90) per share. “The proceeds from the newly issued Ordinary Shares will be used to finance the Company’s organic growth and digital investments, as well as potential value-accretive M&A,” said the statement issued late on Wednesday. The company’s market capitalisation will be at 66.8 billion on a post-money basis, it said. Wednesday’s pricing brought the company’s capitalisation broadly in line with the initial plan that a person familiar with the matter shared with Reuters in September. Renaissance Insurance Group is one of a number of Russian companies that have decided to list shares as Russia’s IPO activity has picked up pace recently after being hit by the pandemic last year. ($1 = 71.0350 roubles) Reporting by Andrey Ostroukh and Olga Popova; writing by Alexander Marrow and Andrey Ostroukh; Editing by Richard Chang Our Standards: The Thomson Reuters Trust Principles.