* Japan Post Bank IPO price set at 1,450 yen per share
* Japan Post Insurance IPO priced at 2,200 yen per share
* Firms worth combined $65 billion in total
* Holding company to set price for its own IPO on Oct 26
* Triple listing is biggest Japan privatisation in 30 yrs (Adds investor reaction, industry context)
By Taiga Uranaka
TOKYO, Oct 19 (Reuters) - State-owned Japan Post on Monday set prices for separate initial public offerings of its bank and insurance arms at the top of their ranges, indicating strong demand from retail investors in what will be Japan's biggest privatisation in three decades.
The two companies, worth a combined $65 billion at the listing prices, and their parent Japan Post Holdings Co are seeking to raise a combined 1.4 trillion yen ($11.8 billion) in a triple IPO set for Nov. 4. Book-building for the Japan Post Holdings sale continues, with pricing due on Oct. 26.
Successfully privatising the national mail company - squarely marketed at the country's mom-and-pop investment community - is a key plank of a campaign by Prime Minister Shinzo Abe to unlock massive stockpiles of household savings. While proceeds will help fund reconstruction after Japan's 2011 natural disasters, Abe is keen to stoke domestic stock investments, boosting the Tokyo bourse.
"It's not a surprise," said Ikuo Mitsui, a fund manager at Aizawa Securities, referring to the top-of-range pricing for businesses seen as stable and low-risk. "There is relatively solid demand."
The deals are the latest in a string of national postal service listings as debt-burdened countries sell assets to raise funds. Italy is now seeking up to $4.2 billion from the sale of close to 40 percent of Poste Italiane in a Milan market debut set for late October.
The Japan Post companies didn't disclose details of subscription levels in regulatory filings on Monday announcing the IPO prices. The firms simply cited a "significant number" of subscriptions at the top of the book-building ranges.
ATTRACTIVELY SAFE
Even though the businesses don't offer dynamic future growth potential, said Shingo Ide, chief equity strategist at NLI Research Institute, investors see them as an attractive safe-haven alternative to utility stocks. That broad appeal should also bolster price and demand for Japan Post Holdings, market watchers say.
Monday's filings showed Japan Post Bank Co priced shares in its listing at 1,450 yen apiece, compared with a book-building range of 1,250-1,450 yen. The sale is worth 600 billion yen, and values all of Japan Post Bank at 6.5 trillion yen.