Luxury yacht maker Ferretti and high-end audio equipment group RCF pulled their share sales last week due to poor investor demand but Newlat is pressing ahead and plans to debut on the Milan bourse later this week.

Italian and international asset managers have placed relevant orders for Newlat shares, one of the sources said, adding the final price for the IPO would likely be below the mid-point of the 5.80-7.30 euro-per-share range.

The group is based in the northern town of Reggio Emilia and owns a portfolio of more than 20 food brands including pasta label Delverde and dairy brand Polenghi Lombardo.

It is offering 17 million new shares, corresponding to around 41% of the company's capital following the offer, to raise fresh funds for acquisitions and to improve its existing plants.

Newlat said previously that the indicative valuation range corresponded to a valuation before the capital increase of between 157 million and 197 million euros (£169 million) ($220 million).

The share sale is due to close on Tuesday afternoon and the company plans to debut on the Milan bourse on Oct. 24.

Equita SIM, HSBC and Societè Generale are global coordinators for the share sale.

(Editing by Giulia Segreti; Editing by Kirsten Donovan)

By Francesca Landini and Elisa Anzolin