Thursday 14 December 2017

Price range for AIB's initial public offering narrows due to 'strong appetite for deal'

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Gretchen Friemann

The price range on AIB's initial public offering has narrowed to between €4.20 to €4.60 per share following strong appetite for the deal at the low end of the initial valuation range, according to a term sheet sent to investors.

News of the revised price target comes as bankers on the float prepare to close the books on retail orders.

The Government sell-down of a 25pc stake, or 679m shares, was initially priced at €3.90 to €4.90 per share.

However shortly after the books opened investors were told to bid above the floor price.

Bankers to the deal now have demand to cover the mid-point of the revised range or €4.40 per share.

AIB's shares will return to normalised but conditional trading on the Irish and UK stock exchanges on Friday. Fully unconditional trading commences on Tuesday.

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