Permanent TSB will this week announce plans to raise up to €550m from private investors.
According to The Sunday Business Post, the bank will use the cash to plug a capital shortfall after it failed the European stress tests last October.
Initial details will be revealed by the bank's management team on Wednesday when it reveals its annual results.
The Government, which owns 99 per cent of the bank, is not expected to take part in the fundraising and in doing so will see its stake fall.
The bank is expected to operate at a loss for the next few years due to losses on tracker mortgages.
PTSB was bailed out with €2.7bn of taxpayers' money.
Ian Guider is Markets Editor with the Sunday Business Post.
He says the lack of Government intervention will see our stake fall:
