The small amount of AIB shares which are currently being traded took a major hit after the publication of its 700-page pre-IPO prospectus.

Its shares fell by more than 20% in early trading - they are currently down by 17.69%.

AIB's document set a share price range of between €3.90 and €4.90 valuing the bank between €10.6bn and €13.3bn. The middle of this range is just under €12bn, as expected.

The shares are likely to be finally priced late on Thursday, June 22nd and to begin trading on the morning of Friday the 23rd.

Commenting on the announcement, Michael Noonan, Minister for Finance, said: "The time is right to move to the next stage in AIB’s IPO process as market conditions remain favourable and I am encouraged by the strong level of interest shown by investors in the offering to date."

"A successful transaction would represent an important milestone in our journey to dispose of our banking investments and ultimately recover all the money the Irish State has invested in AIB."

The State hopes to earn some €3.8bn offloading 25% of its 99% stake in the bank.

This will be one of the largest IPOs by a European bank since the financial crisis.