Aer Lingus listing goes ahead today

The formal stock market listing today of Aer Lingus will have none of the fanfare that accompanied the flotation in July 1999 of Telecom Éireann, now Eircom.

The publicity drive around the Telecom privatisation saw its then chief executive Alfie Kane ascend above Dublin in a hot air balloon. In addition, the then minister for public enterprise Mary O'Rourke was accompanied on a visit to Wall Street by a platoon of Macnas drummers dressed up as James Joyce and other writers better known for their books than their business prowess.

In stark contrast, the flotation of Aer Lingus on the Dublin and London market has been a far quieter affair. Years after privatisation was first mooted, the airline's formal assumption of its listing this morning will be marked by little more than a 7 am notice to the markets.

Minister for Transport Martin Cullen is likely to visit the Dublin exchange at some stage today, but there will be no formal celebration.

Trading on the grey market in Aer Lingus shares began last Wednesday when stock became available at €2.20 per share.

The shares were priced at €2.48 at the close of trading on Friday night.

Investors who bought shares in the flotation will have them credited today to their individual accounts on the electronic Crest system, which are managed on their behalf by brokers.

Trading before today's formal listing was conditional on the flotation going ahead. If, for any reason, the flotation had been cancelled after grey market trading commenced, dealings in the stock would have been voided and any losses would have been the responsibility for the parties involved.

While joint bookrunner Goodbody was the only broker making a market in Aer Lingus shares last week, other brokers will start to make a market today.

The Government is holding on to a 28.3 per cent stake in Aer Lingus after the flotation.

This includes a core stake of 25.1 per cent and 2.5-2.6 per cent for potential distribution to the airlines' employee share ownership trust (Esot), which will have a 12.3 per cent stake after the flotation.

The Government will hold an additional 0.4 per cent for distribution in a one-for-20 incentive scheme for investors in the initial public offering who hold on to their stock until October 1st next year.

Stockbroking sources made light of a Sunday newspaper report which said the Competition Authority was examining the similarity of the transaction fees that brokers charged in the privatisation processes. "I would be amazed if there was any need for a Competition Authority review. I think it's madness," said one person.