Oct. 28 (Bloomberg) -- Electricite de France SA may become Europe's largest publicly traded utility, replacing Germany's E.ON AG, after its shares priced in a range that would value the company at as much as 63 billion euros ($76 billion).

The shares went on sale today to institutional investors for between 29.5 euros and 34.10 euros each, the French Finance Ministry said in an e-mailed statement last night. Individuals and staff will be offered a discount. The sale will close Nov. 17 and the stock is scheduled to start trading in Paris on Nov. 21, the Ministry said.

EDF plans to raise as much as 7 billion euros to help fund a five-year, 40 billion-euro expansion plan in Europe, where power and gas markets must open to full competition before 2007. Chief Executive Pierre Gadonneix is trying to overcome pressure from unions and a legacy of decades of state ownership to become more efficient and compete with E.ON, RWE AG and Italy's Enel SpA.

``The offer will allow EDF to carry out a significant investment program and to compete with its rivals,'' the Ministry said in the statement. ``The share sale will give EDF additional capital and it will allow it to cut its debt.''

The French state, which will keep at least 85 percent of EDF, will sell a maximum of 36 million existing shares directly to employees. The shares offered to private investors and institutions will be new stock issued by EDF.

EDF will issue as many as 206 million new shares, with 31 million additional shares assigned to the banks as the so-called greenshoe option, or an over-allotment that banks managing the sale can exercise. EDF will have as many as 1.8 billion shares at the moment of listing, according to Bloomberg calculations.

Retail investors will be offered the shares at between 28.5 euros and 33.10 euros, the statement said.

Credit Agricole SA's Calyon investment banking unit, Morgan Stanley, BNP Paribas SA and ABN Amro Rothschild are managing the sale.

Successful IPOs

At the highest price, EDF would be the world's largest initial share sale since AT&T Wireless Group raised $10.6 billion in April 2000. EDF is France's largest initial offering, topping France Telecom SA's sale in October 1997 and its Orange SA public offering in February 2001.

Gaz de France SA, the country's largest natural gas distributor, and Elia System Operator, which runs Belgium's electricity transmission grid, have already sold stock this year. Elia shares have gained 19 percent, while Gaz de France shares, oversubscribed 30 times, have risen 8 percent since they started trading in July.

Utility stocks have increased as record gas and electricity prices bolstered profits. Wholesale power prices have gained 60 percent in France during the past 12 months, 57 percent in Germany and 23 percent in the U.K., according to Bloomberg data. The rise has followed record prices of fuels, such as oil and gas.

Big Rally

Shares of utilities have had the longest rally in more than a decade. The Dow Jones Europe Stoxx Utilities index has risen for eight consecutive quarters, surging 69 percent between Sept. 30, 2003, and the end of last month. The index hasn't had a similarly long advance since at least 1992.

In Britain, Drax Group Ltd., owner of Western Europe's largest coal-fired plant, has received three takeover bids in the past two months, at the same time that it's preparing to become a publicly traded company.

The value of takeovers involving European utilities has risen to $158 billion so far this year, compared with $62.6 billion in all of 2004, according to data compiled by Bloomberg.

EDF expects net income to increase by at least 10 percent annually during the next three years, lifted by rising demand.

EDF wants to expand in Europe, after reducing its stakes in Asian and South American assets. Earlier this year, the company increased its interest in Swiss power producer Motor-Columbus AG and agreed to buy, along with Milan utility Aem SpA, Italy's Edison SpA for as much as 7.28 billion euros.

To contact the reporter on this story: Elena Moya in London at moya@bloomberg.net

Last Updated: October 27, 2005 20:32 EDT