State proceeds from AIB stake sale confirmed at maximum €3.4bn

AIB shares have continued to perform well since IPO closing at €5.121 on Wednesday

The Department of Finance said on Thursday that it will receive the maximum €3.4 billion envisaged from the sale of its AIB stake. Photograph: Cyril Byrne

The Department of Finance said on Thursday that it will receive the maximum €3.4 billion envisaged from the sale of its AIB stake. Photograph: Cyril Byrne

 

The Department of Finance said on Thursday that it will receive the maximum €3.4 billion envisaged from the sale of a 28.8 per cent stake in AIB last month.

This includes €448 million from a right that was exercised on the day of the bank’s flotation on June 23rd to place additional shares under a so-called over-allotment option.

Some or all of these additional shares – amounting to a 3.8 per cent stake – could have been bought back by the investment bank in charge of ensuring a stable market for the stock after the initial public offering (IPO), had AIB shares fallen below the initial public offering price of €4.40 per share. However, the shares have continued to perform well since the IPO, closing at €5.121 on Wednesday in Dublin.

“Given the positive aftermarket performance of AIB’s share price since the IPO listing date, there have been no stabilising transactions by the stabilisation manager, Deutsche Bank, ” the department said in a statement on Thursday. “As a result, Deutsche Bank will announce that the stabilisation period ended on July 5th, 2017, allowing the remaining €448 million proceeds from the AIB IPO to be remitted to the exchequer.”

That brings the total from the stake sale to €3.4 billion.