Regular investors will soon be invited to buy shares in AIB, when the Government announces a 25% trade sale as part of an IPO (initial public offering) or secondary market offering.
On the timing of the upcoming IPO, AIB management has said “the bank is now ready for an IPO, when market conditions permit and the Minister of Finance decides”. The latest guidance from the Minister suggested a window of opportunity from mid-May to early July.
The government aims to maximise the investment return for the tax payer, given the bailout of AIB during Ireland’s banking and financial crisis. In February, the Irish Strategic Investment Fund (ISIF) revalued its 99.9% investment in AIB at €11.3bn. AIB has now repaid €6.8bn to the Irish Government since its bailout following the financial crisis. Earlier this year, AIB reported solid FY16 results and reinstated a dividend for the first time since 2008. Up to €3 billion is expected to be raised by the flotation. AIB is less exposed to Brexit than Bank of Ireland and is a more focused play on a strengthening Irish economy. Approximately 81% of AIB’s loan book originates in Ireland compared to 60% for Bank of Ireland.
A number of financial services providers are being appointed by the government as designated stockbrokers or intermediaries in the sale of shares. We understand a minimum investment of €10,000 may apply.
Cantor Fitzgerald is hopeful of being appointed as Participating Intermediary for this offering. Once this is confirmed, clients can transact through their existing account while new clients will be invited to open an account. We will let you know progress and related information once available. To register your interest in acquiring shares please click here.
To speak with a Portfolio Manager or Account Executive today, phone the Cantor Fitzgerald dealing desk on 01 633 3633 or email Ireland@Cantor.com.
To download a copy of our May Investment Journal click here.