Bailed out Allied Irish Banks returned to stock market in ‘landmark’ sale
- Credit: PA
Ireland has returned Allied Irish Banks (AIB) to the stock market in a landmark moment that underscores the lender’s recovery after it was saved from collapse during the financial crisis.
The Irish government completed the biggest European share sale this year, raising three billion euro (£2.6 billion) in a flotation valuing AIB at 12 billion euro (£10.5 billion).
The move carried an offer price of 4.40 euro (£3.90) per share and will see the state continue to hold a 71% to 75% stake, with a view to selling it off in the coming years.
Paschal Donohoe, Ireland’s finance minister, said the initial public offering (IPO) had created a “strong platform” for the government to recover all the money it had invested into AIB during the 2008 banking crisis.
He said: “The successful completion today of AIB’s IPO 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.”
“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.”