AIB 520B shares....

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whiskey1

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I was reading in the paper that AIB have around 521 Billion shares in issue. So the government owes 99.8% of AIB that is around 520B shares.

Does this mean that if an investor was to buy 50% of AIB off the government and with a current share price of 0.10euro that it would be paying (260B x 0.1) 26 Billion euros?
 
I am reading the link above as saying there are five hundred thousand million shares

"Shares Outstanding (M) 521,261.20"

which is 500 bn+

Heard some chat on radio about this - I don't really understand what was going but the discussion centered on this being a technical illusion.
 
whiskey1 said:
I was reading in the paper that AIB have around 521 Billion shares in issue. So the government owes 99.8% of AIB that is around 520B shares.

Does this mean that if an investor was to buy 50% of AIB off the government and with a current share price of 0.10euro that it would be paying (260B x 0.1) 26 Billion euros?
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In theory yes if they paid the current price. It would seem the current price is pure fantasy though as recent reports suggest AIB is the most valuable bank in Europe based on market capitalisation (the reports I read acknowledge this is pure nonsense and is due to the very small number of shares actually in free float due to the government holding over 99%, it was suggested lifting the ban on shorting AIB would soon sort out the irrational pricing).
 
Thats right-there was an article published recently that said AIB was worth more than Deutche Bank based on its share price. It's Market cap of about €24bn is a false one though as only .2% of shares are traded. Given AIB is loss making, whereas DB posts a profit, shows that this value is far from accurate!
I am sure Govt would love to sell it's share....buyers are not exactly lining up!
 
What's strange is that there is (albeit tiny volume of) trading at these crazy prices.You would wonder who is actually buying the shares?
 
tvman said:
What's strange is that there is (albeit tiny volume of) trading at these crazy prices.You would wonder who is actually buying the shares?
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People buying aib shares are those i suspect think aib is going to follow bank of ireland, but not fully realising the huge number of shares in aib and the actual amount that are tradeable.
 
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