Sunday 25 February 2018

AIB IPO may be delayed due to UK election outcome

Theresa May
Theresa May
Charlie Weston

Charlie Weston

UNCERTAINTY hangs over the AIB flotation after the inconclusive results of the UK election.

This has raised the prospect that Government could delay the offering until the autumn if it emerges that investors demand a low price for the shares.

Sources said the share sale was going ahead for now, but the situation would be assessed over the next few days.

The Department of Finance had been expected to issue the price range for the AIB initial public offering (IPO) in the middle of next week.

On the same day it is due to release the flotation prospectus, a legal document sets out all the details about the bank and the investment offering.

There are now indications that the issuing of the price range could be pushed back by a couple of days or could even into the following week.

And the IPO could even be postponed until the autumn.

A person familiar with the situation said: "The flotation is proceeding at the moment, but big decisions on the price range have to be made in the next few days."

A spokesman for the Department of Finance said: "The transaction timetable was designed to cater for the UK election. We remain on track to issue a price range prospectus over the next week or so."

Irish Independent

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