Aer Lingus has priced its planned initial public offering (IPO) at between €2.10 and €2.70 per share to give it a post-float value of €1.1 billion to €1.3 billion.
The offering is worth about €660 million at the middle of the price range, which would give Aer Lingus net proceeds of €470.3 million, assuming no over-allotment shares are issued.
"It is expected that the net proceeds of the offer received by the company will be used primarily to finance the expansion and replacement of Aer Lingus's short-haul and long-haul fleet," the group said in a statement.
Some €104 million will go towards plugging a gap in the carrier's pension fund. The remainder will be used to fund the group's €2 billion fleet expansion.
The airline will announce a final IPO price on September 27th, with listing on the Dublin and London stock markets planned for October 2nd.
Aer Lingus will issue 208.4 million new shares as part of the IPO, while the Irish Government - which holds 85 percent of the airline - will sell 72.7 million shares. The government will retain a stake of at least 25.1 per cent.
It will be the first flotation of an airline on the London Stock Exchange since Easyjet six years ago and comes amid concern over airline security and high fuel prices.
The group, which has successfully realigned itself as a low-cost carrier since a brush with bankruptcy in 2001, views the IPO as crucial to plans to expand its fleet, particularly the long-haul arm seen as key to its future.
Shares will be offered to domestic and international institutions. The public in Ireland and Britain will be allowed to buy, but a minimum subscription of €10,000 will apply, with at least 50 per cent held by Irish shareholders.
The partial sell-off has been dogged by problems, including a row between management and unions over the pension shortfall. Unions at the airline remain opposed to the privatisation, fearing it threatens the job security of members.
The Government is being advised on the IPO by Allied Irish Banks and Swiss broker UBS, while Aer Lingus has retained Dublin-based Merrion Capital and US investment group Goldman Sachs.