NEW YORK (Reuters) - Aircraft leasing firm Babcock & Brown Air raised about $430 million with an initial public offering that was priced in the middle of a forecast range.

The offering of nearly 18.7m American depositary shares sold for $23 per share, compared with a forecast range of $22 to $24, according to an underwriter.

Each ADS represents one common share.

The offering price gives Babcock & Brown an initial market capitalisation of about $773m.

B&B Air, which is incorporated in Bermuda, but operates out of Dublin, is being spun off from Sydney-based advisory and investment firm Babcock & Brown.

Babcock & Brown and entities affiliated with it will own roughly 30 percent of the company after the offering and a concurrent private placement.

B&B Air will sell 14.9m ADS in the private placement at a price equal to the public offering price.

Additional funds will be raised by the issue of bonds backed by aircraft leases.

B&B Air estimates the total net proceeds of the offering, private placement and bond issue, will be about $1.6 billion.

Proceeds from its offering will be used to buy 47 planes - 44 of them from B&B Air's predecessor company, JET-i Leasing, and three from companies managed by Babcock & Brown.

B&B Air's competitors include General Electric Cos. GE Commercial Aviation Services and ILFC, a unit of insurer American International Group Inc. Underwriters, led by Morgan Stanley, Citigroup, Merrill Lynch and Credit Suisse, have the option to purchase an additional 2.8m ADS to cover over allotments.