The State has again narrowed the price range at which it will sell shares in AIB in its flotation later this week.

The development shows there is strengthening demand for the stock. The shares will trade at between €4.30 to €4.50. 

Yesterday the advisors to the Government had said the range would be between €4.20 and €4.60.

The advisors said the offer to retail investors or ordinary buyers had now been closed and they had been allocated 10% of the shares which will be sold.

The offer to institutions will close at noon on Thursday.

The flotation will proceed at 8am on Friday morning when AIB shares will be listed on the Main Securities Market of the Irish Stock Exchange.