UPDATE 1-China's SouFun Holdings files for $120 mln IPO

* Co, selling stockholders to offer 2.9 mln ADSs

* Expects pricing between $40.50-$42.50

* Deutsche Bank, Goldman Sachs to underwrite



Sept 2 (Reuters) - China's SouFun Holdings Ltd filed with U.S. regulators on Thursday for a $120.4 million initial public offering of common stock.

The operator of a real estate Internet portal in China expects the offering of 2.9 million American Depository Shares -- which represents 11.7 million of its class A shares -- to be priced between $40.50 and $42.50.

Of the 2.9 million ADSs, the company will offer 246,914 ADSs, while selling stockholders will offer 2.7 million ADSs.

Telstra International, one of the selling shareholders, has granted the underwriters an option to purchase up to 439,986 additional ADSs to cover excess demand, the company said.

SouFun expects to receive net proceeds of about $6.9 million and will use it in part to pay for expenses related to the offering.

Deutsche Bank and Goldman Sachs are underwriting the offering, SouFun said in a regulatory filing.

SouFun has received approval to list its ADS on the New York Stock Exchange under the symbol 'SFUN.'

(Reporting by Sweta Singh in Bangalore; Editing by Don Sebastian) Keywords: SOUFUNHOLDINGS/IPO ([e-mail] ; within U.S. [phone]; outside U.S. [phone]; Reuters Messaging: [e-mail]) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.