Irish state airline Aer Lingus is to price its planned initial public offering at between 2.10 and 2.70 euros per share, Irish state broadcaster RTE said on Tuesday.

The flag carrier will have a final value after flotation of between 1.1 billion and 1.3 billion euros, RTE said. The offering is set to be worth about 660 million euros (450 million pounds) at the middle of the price range.

The airline and the government plan to set a final IPO price on the night of September 26, it added.

A source close to the process told Reuters on Tuesday that as part of the IPO in London and Dublin, Aer Lingus would issue around 210 million new shares while the Irish government would sell 75 million shares.

The price range for the flotation, expected to take place on October 2, was due to be announced formally on Tuesday morning.

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.

Based on the mid price, Aer Lingus which requires cash to expand its fleet will raise about 470 million euros, with the rest of the IPO value accounted for by the sale of part of the government's current 85 percent stake.

The government will retain around 25 percent while the Employee Share Ownership Trust will keep its 15 percent stake.