DUBLIN: The Irish government launched its long-awaited initial public offering of state-owned AIB on Tuesday, offering a 25 percent stake in what is set to be one of Europe’s largest bank listings since the 2008 financial crisis. Analysts say it could raise around 3 billion euros, based on the bank’s book value of 11.3 billion euros at the end of a year ago and the fact that it has continued to generate capital and resumed dividend payments since. 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.
Dublin owns a 99.9-percent stake in the bank after rescuing it with nearly 21 billion euros ($23 billion) of taxpayers’ cash seven years ago. “Once the 25% hits the market, we’ll have a fully liquid stock, so you’d expect more normalised share-price movements over time”. “Today’s decision is a significant step in the continued normalization of the state’s involvement in Ireland’s banking system”.
AIB management have said they have received “huge interest in the Irish story” from investors in recent months, pitching the bank as a rare stock market play focused nearly exclusively on the European Union’s fastest growing economy.
