Friday 15 December 2017

Government set to bring in up to €3.3bn for Exchequer with AIB shares sale

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Charlie Weston

Charlie Weston

THE Government has set the price for the shares it is selling in AIB.

They will be offered to investors at prices between €3.90 and €4.90 per share.

This will generate between €2.6bn and €3.3bn for the Exchequer.

Financial experts said this was within the range expected, and indicates good demand for the shares.

AIB will be valued at between €10.6bn and €13.3bn, after the price range was set. This is based on the advice from investment banks after they canvassed demand from potential investors.

The final share price is expected to be announced on June 23 next, the Department of Finance said in a statement this evening.

The Government is selling 25pc of the bank’s shares on the Dublin and London Stock Markets in the initial public offering (IPO).

Shares are likely to start trading on the stock markets from June 27.

Finance Minister Michael Noonan said: “The time is right to move to the next stage in AIB’s IPO process as market conditions remain favourable and I am encouraged by the strong level of interest shown by investors in the offering to date.

“A successful transaction would represent an important milestone in our journey to dispose of our banking investments and ultimately recover all the money the Irish State has invested in AIB.”

Retail investors will have to apply for at least €10,000 worth of shares and have an account with a stockbroker to be considered for a share allocation.

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