[Article available online as of 21/06 at 19h20 and updated on 22/06 at 9: 40am]
The operation promises well. The privatization of the first irish bank, Allied Irish Banks (AIB), has apparently attracted investors : the final price of the shares sold by the State will be established in the top of the indicative range (between 4,30 and 4,50 euros from 3.90 to 4.90 euros initially). The request would have exceeded several times the offer of securities placed by the government which has to yield in the order of 25% of the share capital (up to 28.75 per cent in the case of the exercise of the over-allotment option).
This partial privatisation will yield a minimum of € 2.9 billion to the irish government and up to $ 3.5 billion (in the upper range with the over-allotment option). The irish minister of Finance will announce the final size of the transaction and the price on the 23rd of June, says the bank. Approximately 10% of the titles will be reserved to individual investors. The listing should start as soon as Friday.
Allied Irish Banks will be funding about 12 billion euros and will come in six values heavy weight of the rating in Dublin (it will be listed also in London). This is the most important Stock market of a banking group since the financial crisis of 2008. This will also be the greatest introduction to the London stock Exchange, all sectors combined, since the broker raw materials Glencore in 2011.
Recovery express after the bursting of the bubble
A victim of the bursting of the housing bubble, Allied Irish Banks had been saved from bankruptcy by the irish government, who had bailed out to the tune of 21 billion euros. The State has recovered 6.6 billion in various forms (dividends, interest, return of capital). Has the image of the irish economy itself, which is experiencing one of the highest growth rates in Europe, AIB has recovered rapidly, returning to profitable three years after its withdrawal from the stock Exchange.
The irish government will use these funds for the reduction of the public debt, which reached 200 billion euros, which is the highest in the euro area.