Air China confirmed it was looking to raise up to US$1 billion in its Shanghai initial public offering as it set the price range for the offering at US$0.35-0.38 per share. It will issue a total of 2.7 billion A-shares, comprising 22.25% of its total equity. Based on the share price range, the price-earnings ratio will be between 20.07 and 21.53 times diluted earnings in 2005. The company is expected to start trading on August 22. Air China hopes to use the proceeds of the share sale to purchase new aircraft, including 20 Airbus 330-200s, 15 Boeing 787s and 10 Boeing 737-800s, and to expand its operations at Beijing Capital International Airport.