UPDATE 1-Verso Paper raises $168 mln in IPO

(Adds dateline, IPO pricing)

NEW YORK, May 14 (Reuters) - Verso Paper Corp (VRS.N: Quote, Profile, Research, Stock Buzz) said on Wednesday it sold $168 million worth of stock in its initial public offering, much less than the glossy paper producer had originally expected.

The maker of coated paper for magazines and catalogs said it had sold 14 million shares at $12 each late on Wednesday, with an option for underwriters to sell a further 2.1 million shares.

Last month Verso, which was once a unit of International Paper Co (IP.N: Quote, Profile, Research, Stock Buzz), said it was looking to sell 18.75 million shares at $16 to $18 per share, which would have raised $300 million to $337.5 million.

The company, now majority-owned by private equity firm Apollo Global Management, originally filed in December to sell shares worth as much as $345 million.

Verso said on Wednesday the proceeds of the IPO would be used to pay off $153.3 million in debt and related prepayment fees.

The company's stock is set to trade under the symbol "VRS" (VRS.N: Quote, Profile, Research, Stock Buzz) on the New York Stock Exchange. (Reporting by Sayantani Ghosh in Bangalore and Bill Rigby in New York; Editing by Amitha Rajan, Richard Chang)