Irish people bailed out AIB but only the wealthy given chance to buy shares today

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.

The development will raise an additional an additional €400m, which will bring the total proceeds of the IPO to €3.4 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.