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Bankers profit from Ardagh's upscaled IPO


Ardagh Chairman Paul Coulson

Ardagh Chairman Paul Coulson

Ardagh Chairman Paul Coulson

Packaging conglomerate Ardagh Group gathered a total of $319m from its initial public offering after bankers maximised the deal size on the back of strong demand.

The additional 2.4 million shares, known as a greenshoe, took the total amount of shares issued under the offer to 18.6 million. The upscaled deal size means the eight bank-strong consortium, led by Citigroup, will share a wider fee pool of US$21.2m.

Shares in the Luxembourg-based supplier of glass and metal containers debuted on the New York stock exchange last week. Books on the deal closed earlier this week.

However, the value of the shares gave up some of their initial gains. After reaching a peak of $23.50 the stock fell back to $21.20 yesterday - still some distance above the issue price of $19.

Ardagh, backed by financier Paul Coulson, has long targeted a stock market flotation and it is understood its register is made up of long-only institutional investors and hedge funds.

Irish Independent