Business Irish

Thursday 19 October 2017

State to receive additional €448m from the sale of AIB stake

AIB CEO Bernard Byrne rings the bell at the Irish Stock Exchange as Deirdre Somers, CEO of the exchange, and Richard Pym, chairman of AIB, look on
AIB CEO Bernard Byrne rings the bell at the Irish Stock Exchange as Deirdre Somers, CEO of the exchange, and Richard Pym, chairman of AIB, look on
Ellie Donnelly

Ellie Donnelly

The Department of Finance has today confirmed that an additional €448m will be released to the Exchequer following the sale of a stake in AIB.

This brings the total proceeds received from the IPO to approximately €3.4bn.

The €448m comes from over-allotment shares that were allocated to investors at the Initial Public Offering (IPO) price of €4.40 on the day of the IPO along with the base offer shares (which were 25pc of AIB's issued share capital).

Read more: Donohoe may seek Dáil deal to sell off more chunks of AIB

The €448m of cash raised from the sale of the over-allotment shares – which represent a 3.8pc stake in the bank – had been held by the stabilisation agent as part of the stabilisation agreement with the Department of Finance.

As no shares have been bought back in the market using this cash reserve and the agreement has now been terminated, this cash will be transferred to the Exchequer.

Read more: AIB won't expand abroad for three years, says CEO

"Given the positive aftermarket performance of AIB's share price since the IPO listing date, there have been no stabilising transactions by the Stabilisation Manager, Deutsche Bank," the Department of Finance said in a statement.

"As a result Deutsche Bank will announce that the Stabilisation period ended on the 5th July 2017 allowing the remaining €448m proceeds from the AIB IPO to be remitted to the Exchequer bringing the total proceeds received from the IPO to approximately €3.4 billion," the Department said.

Online Editors

Also in Business