UPDATE 1-Resolution eyes 3-5 bln stg issue post IPO -sources

* 500 million pound-IPO covered

* Expects rights issue of 3 bln to 5 bln pounds in H1 2009

* Listing on Dec. 10

By Daisy Ku

LONDON, Dec 3 (Reuters) - UK buyout firm Resolution Ltd is likely to see an IPO size at the lower end of its indicated range, but it plans to raise as much as 5 billion pounds next year after spotting acquisition targets, people familiar with the matter said.

Resolution had attracted 500 million pounds ($736.8 million) before closing the placing on Thursday, sources said.

Although the deal size is likely to close at the lower end of an indicated range of 500 million to 1 billion pounds, investors are prepared to participate in a rights issue of 3 billion pounds to 5 billion pounds in the first half of 2009, when Resolution secures a buyout target, two sources told Reuters.

"The first stage is for Resolution to become a public vehicle. Existing shareholders can then participate in the rights issue," one of the sources said.  Continued...