Turkey's Pegasus Airlines is aiming for the launch of an initial public offering of around a third of its shares in mid-April with most of the stake to be distributed to foreign investors, sources familiar with the plan told Reuters.

The low-cost airline, which is based in Istanbul, said last week that it expects the IPO to help fund its plan to expand and increase capital to 102 million lira.

65-80% of the offering would be allocated to foreign investors, the sources added. According to stock exchange data, the carrier will have a free float of 31.4% once the sale is completed, leading to an increase to 34.3% during the exercise of an over-allotment option.

Recently, Pegasus has cancelled its plan to go public in 2011 resulting from poor market conditions.