Ireland has returned Collaborated Irish Bank to the stock market
The Irish government completed the biggest European partition sale this year, raising €3 billion (£2.6 billion) in a flotation valuing AIB at €12 billion (£10.5 billion).
The affect carried an offer price of €4.40 (£3.90) per share and will see the state extend to hold a 71 per cent to 75 per cent stake, with a prospect to selling it off in the coming years.
Paschal Donohoe, Ireland’s fund minister, said the initial public offering (IPO) had created a «strong stand» for the government to recover all the money it had invested into AIB during the 2008 banking catastrophe.
He said: «The successful completion today of AIB’s IPO represents a significant milestone in the administration’s long-held policy to dispose of our banking investments, returning them to the non-public sector over time.
The Irish government raised €3 billion in a flotation valuing AIB at €12 billion
The tender was very well received and attracted high demand from investors
«The come forward was very well received and attracted high demand from investors universally it was marketed, reflecting the strength of AIB’s investment story and prospects, and the attractions of Ireland’s vibrant and thriving economy.»
AIB’s exposure to Ireland’s property market crash nine years ago brought the outback to its knees and triggered a €21 billion bailout (£18.4 billion) to helper shore up the nation’s economy.
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The bank signified in March that it had returned a further €1.8 billion (£1.6 billion) to the specify, meaning it had paid back €6.8 billion (£5.9 billion) of the €21 billion (£18.4 billion) bailout savings.
The lender also reported an annual pre-tax profit of €1.7 billion (£1.47 billion) earlier this year, and hurled a dividend for the first time in nine years.
AIB’s shares will now be tilted on the Irish Stock Exchange and the London Stock Exchange.