Russia's Human Stem Cell Institute will raise around 140 million roubles ($4.80 million) at its upcoming IPO after avgreeing to sell shares at the lower end of its price range, the company said on Tuesday.

The Moscow-based biotech said in a statement the shares would be sold at 9.5 roubles a share, within an expected price range of 9-11 roubles a share.

A source close to the deal added that Russia's first initial public offering since the financial crisis erupted last year was oversubscribed, with more than 300 investors showing interest, mostly individuals.

Several institutional investors have shown interest in the deal, but the company from the very beginning has aimed to attract as many investors as possible, the source said.

Stem Cell Institute had planned to sell 15 million shares or 20 percent of the company for up to 165 million roubles.

Investors who look beyond Russia's main stock market and private equity investors remain keen on technology companies which often capitalise on Soviet-era scientific prowess.

The institute, which was founded in 2003, has its own bank of stem cells from umbilical cord blood and plans to develop its own medicines. Cash raised from the IPO will be spent on new projects in Russia and the ex-Soviet Union, and on the development of new products.

The institute expects profit to rise 30-40 percent each year and sales at a similar pace.

Its founder last month called on the Russian government to support the biotech sector as part of the diversification of the economy away from oil & gas and resources. 

 (Reporting by Olga Popova; Writing by Dmitry Sergeyev)