BRUSSELS - Belgian drugmaker Movetis priced its initial public offering at 12.25 euros on Thursday -- just below the middle an indicated range of 11.25-14.25 euros, in a signal of the resurgence of the European IPO market.

The flotation marks the largest IPO in Belgium since zinc and lead company Nyrstar (NYR.BR) raised about 1.74 billion euros ($2.63 billion) in Oct. 2007.

It could also signal an opening in the IPO window for young European drug companies following a dearth of new issues in recent years.

Movetis said it raised 85 million euros, the amount it predicted in November, and the stock is expected to start trading on Friday.

If an over-allotment option is exercised in full, the total amount of the capital increase will be as much as 97.75 million euros.

The gastrointestinal specialist plans to use the cash to help fund the European launch of its lead product Resolor, which treats chronic constipation in women and was approved for sale in Europe in October.

Movetis was founded in 2006 as a spin-out from Johnson & Johnson (JNJ.N), which retains the rights to sell Resolor, also known as prucalopride, in much of the world.

Belgian chemical company Taminco is also planning to float on Euronext Brussels, Belgian media have said, and could raise about 500 million euros in the spring of 2010.

Europe's IPO market has lagged Asia and the United States this year, with volumes of $741 million in the first three quarters dwarfed by Asia's $35 billion and less than one-tenth of U.S. volumes.

But the fourth quarter has seen a pick-up with $4.1 billion of IPOs in Europe up to early November, according to Thomson Reuters data.

Earlier on Thursday, Italian online retailer Yoox (YX3.BE) saw its shares jump above their high-end issue price at their debut, tapping into reviving investor appetite for equities in the first initial public offering in Milan in 20 months.

The Movetis IPO is being led by Credit Suisse and KBC Securities as joint global coordinators and joint bookrunners. Piper Jaffray is acting as co-manager. (Reporting by Ben Deighton; Editing by Andrew Callus)

($1=.6617 Euro)

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