Monday 18 December 2017

Price range for AIB shares narrows for a second time

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Gretchen Friemann

Bankers to AIB's initial public offering have narrowed the pricing range for the second time taking to €4.30-€4.50 per share, as the deal nears a close.

Bankers to AIB's initial public offering have narrowed the pricing range for the second time taking to €4.30-€4.50 per share, as the deal nears a close.

That equates to a market capitalisation of €11.7bn to €12.2bn.

A spokesperson for the Department of Finance said there is sufficient demand throughout the revised range to cover the full selldown of the Government's 25pc stake. AIB will debut on the London and Dublin stock exchange on Friday, with shares trading on a conditional basis.

The retail component of the deal is likely to settle at 10pc of the register, according to a statement to by AIB. Books on the institutional investor side of the deal will close at midday tomorrow.

Yesterday the price was reduced from an initial spread of €3.90-€4.90 to €4.20 to €4.60, indicating there was little appetite for shares at the upper end of the Government's expectations.

The Irish Independent reported today the deal is likely to price at close to €4.40, which represents a 0.9 times valuation to the bank's book value, based on the projected total net asset value at the end of the 2017 financial year. At this price level AIB's market capitalisation would reach €11.94bn.

The Irish Independent also reported that €4.45-€4.50 per share represented the likely upper limit of investor appetite.

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