Economy

AIB listing priced at 4.40 euro per share, raises 3 billion euros

AIB listing priced at 4.40 euro per share, raises 3 billion euros”

It starts the repayment process of the near €21bn the State invested in propping up a stricken AIB almost seven years ago - although the Government views €6.6bn having already been repaid through dividend and government guarantee payments, the redemption of preference shares, and bank levy payments. The shares were floated at €4.40 after the price range had narrowed from between €3.90 and €4.60 over the past two weeks.

The part-listing "represents a significant milestone in the government's long-held policy to dispose of our banking investments, returning them to the private sector over time", Ireland's Finance Minister Paschal Donohoe said today.

The IPO drew about €13.5 billion of orders from investment firms and individuals seeking to invest in Europe's largest such deal so far this year, 4½ times the amount of stock that was put on the market, according to sources.

AIB's shares will now be listed on the Irish Stock Exchange and the London Stock Exchange. Conditional trading of the shares is expected to begin June 23.

Ireland raised 3 billion euros ($3.4 billion) by selling a quarter of Allied Irish Banks (ALBK.I) (AIB) on Friday in a remarkable turnaround for a company at the forefront of reckless lending during the "Celtic Tiger" boom.

More news: Spieth wins Travelers with 60-foot shot from bunker

Noonan said last month that it would probably take 8-10 years to fully return AIB to private ownership.

The return for the state from the IPO, together with the amount AIB has repaid in capital, fees, dividends and coupons since its bailout, now comes to nearly 10 billion euros.

The lender also reported an annual pre-tax profit of €1.7bn earlier this year, and delivered a dividend for the first time in nine years.

The offer was very well received and attracted high demand from investors everywhere it was marketed, reflecting the strength of AIB's investment story and prospects, and the attractions of Ireland's vibrant and growing economy.

The government has meanwhile stated its intention to use the proceeds of the sale to pay down a small portion of its €200-billion national debt, which ranks among the highest in the eurozone.



Like this

loading...
loading...

Latest


26 June 2017
Nestle Targeted By Activist Third Point
Chocolate makers especially are grappling with weak US consumption as Americans increasingly turn their backs on sugar. So far, activist investors have predominantly targeted US companies, putting pressure on them to boost margins.

26 June 2017
Photos of London attackers' belts released
As the three set upon one young male passerby armed police arrived and shot them dead, firing a total of 46 shots. Police are still appealing for witnesses as they piece together details of the attack .

26 June 2017
Is It Time to go for KeyCorp (KEY), The Coca-Cola Company (KO)?
In Consumer Goods sector, shares of The Coca-Cola Firm (KO ) were valued at $45.33 and moved 0.02% as of a recent closing trade. It worsened, as 76 investors sold KO shares while 623 reduced holdings. 45 funds opened positions while 83 raised stakes.

26 June 2017
Romania: president, political parties in talks over new PM
The Social Democrats withdrew support for Premier Sorin Grindeanu after just six months in office saying he'd underperformed. Despite losing popularity, the Social Democrats still have a loyal base in rural areas, and opposition parties are weak.

26 June 2017
America's Cup: Spithill not ruling out change at Oracle's helm
It's no bother to Spithill that Team USA merely cut Team New Zealand's lead in the first-to-seven regatta to 4-1. Spithill said his team had seen the Kiwis taking a few days off during the week while Team USA sailed every day.

26 June 2017
Otto Warmbier's grim fate is routine in hellish North Korea
Simpson remains in the Pro Football Hall of Fame despite a murder accusation, and a conviction for armed robbery and kidnapping. Rodman, a ferocious rebounder and defensive player whose career was far more colorful off the court, was inducted in 2011.

26 June 2017
Jaguar XE, XF and F-Pace gain 296bhp 2.0-litre petrol engine
The introduction of the powerful new engine is the latest in a series of enhancements to the XE, XF and F-PACE. In the Jaguar XF business saloon the new engine delivers 0-100km/h in 5.6 seconds (0-60mph in 5.5 seconds).

26 June 2017
Anonymous says NASA is about to confirm alien life existence
The latest unearthing expands the knowledge about the existence of probable asylums for aliens on other planets in the space. The video has been posted on an unofficial YouTube channel that claims to be affiliated to Anonymous .

26 June 2017
Mistrial Declared In Bill Cosby Rape Case, Jury "Hopelessly Deadlocked"
The Associated Press does not typically identify people who say they are victims of sexual assault unless they grant permission. Andy Lassner, executive producer of The Ellen Show , wrote " I BELIEVE YOU" to the women accusing Cosby of sexual assault.

26 June 2017
Interest Rates Hit a Milestone for First Time Since 2008
They lowered projections for 2017 to 1.6% from their March estimate of 1.9%. Picture it as a double thumbs up from Fed chairwoman Janet Yellen .