Irish government set to float €12bn state-owned Allied Irish Banks (AIB) in London within months

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The Irish government bailed out AIB in 2010 (Source: Getty)

The Irish government is set to float state-owned Allied Irish Banks (AIB) in London in the coming months after pausing plans ahead of the French presidential election.

The initial public offering (IPO), of a 25 per cent stake, could value AIB at up to €12bn (£10bn), meaning it would be one of London’s largest floats in recent years.

City A.M. understands the listing is likely to be split between London and Dublin. 

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A number of banking giants have been drafted in to work on the float. Bank of America Merrill Lynch, Davy and Deutsche Bank are joint global co-ordinators, while Rothschild is independent financial adviser to the Irish government.

In addition, Ireland’s Department of Finance has appointed Citigroup, Goldman Sachs, Goodbody Stockbrokers, JP Morgan and UBS as bookrunners, and Investec as co-lead manager.

In January, Ireland’s minister for finance Michael Noonan said the flotation of AIB was likely to come in May or June. City A.M. understands that the IPO could also be pushed back to the autumn.

The government was delaying the flotation until after the result of the French presidential election, which was won by Emmanuel Macron on Sunday evening. Noonan has indicated that the 8 June UK election would not cause any delays.

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AIB was formerly listed on both the London Stock Exchange and Irish Stock Exchange before being bailed out in 2010 by Ireland’s government, which reportedly provided €21bn of funding.

The government’s Ireland Strategic Investment Fund currently owns a 99.9 per cent stake in the bank.

AIB is one of many big, international companies currently eyeing a London float. The stock exchange is hoping to lure part of Saudi Aramco’s IPO, which is expected to be the biggest in history; Dutch firm TMF is considering London as well as Amsterdam for a £1bn float; and Kuwait Energy announced plans to list in London last week.

Tags: IPOs