AIB shares went on sale this morning after the State sold a 29% stake of the bank at a price of €4.40 per share but members of the public had to meet strict conditions to buy.
These included a minimum investment amount of €10,000 and a requirement that you were a client of a registered stockbroker even though Irish tax payers bailed out the bank to the tune of almost €21 billion.
The sale is the biggest flotation in Europe this year, and the share offer was four times oversubscribed.
350 financial institutions bought shares, with 10% of shares for sale allocated to ordinary investors.
A total of 678,595,310 ordinary shares were sold in today’s IPO.
The department said that based on today’s offer price, AIB’s market capitalisation is approximately €12 billion.
While the initial €3 billion will be paid to the State on Tuesday, the additional €400m will be held by Deutsche Bank which is advising the State on the flotation.
The €400m can be used to support the share price in the event that it falls in the coming weeks.
However, if the flotation proceeds smoothly the full €400m will be returned to the Government in the next month.