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Government to sell off a 25% stake in AIB

AIB shares will be listed on the Irish Stock Exchange and on the London Stock Exchange.

Image: Sam Boal/Photocall Ireland

FINANCE MINISTER MICHAEL Noonan has announced plans for the government to sell off a 25% stake in AIB.

The government currently has a 99.9% ownership of Allied Irish Banks.

AIB received the biggest bailout of all the Irish banks still trading, with the government injecting €21 billion into the bank during the financial crisis.

Analysts say the sale could raise up to €3 billion for the state. The government will publish price ranges at which the shares are expected to be sold in mid-June.

The sale is expected to be the largest initial public offering (IPO) in Europe this year and one of the largest in the UK Main Market over the last 20 years.

AIB shares will be listed on the Irish Stock Exchange and on the London Stock Exchange.

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Following the publication of an approved prospectus in connection with the IPO, members of the public in Ireland and the United Kingdom may apply to purchase shares in the IPO, through what is called an intermediary offer, through participating intermediaries subject to certain conditions.

Announced his intention to float 25%, Noonan stated that “the strong progress made by AIB and current market conditions” mean that now is the right time to commence the process of the Irish State reducing its ownership.

The Government’s long-held policy is that the state should exit its banking investments in a measured and prudent manner, returning ownership to the private sector over time.
“Today’s decision is a significant step in the continued normalisation of the state’s involvement in Ireland’s banking system and reaffirms the government’s commitment to recovering its investment in AIB for the benefit of the Irish people.”

Read: The High Court has squashed a bid to stop the state’s €3bn AIB share sale>

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