AIB flotation process - Guide and FAQ for those who are thinking of buying shares

[Brendan Burgess]

We don't allow speculation about shares on askaboutmoney. This thread is for explaining the process, insofar as it is known.

The Prospectus is here

The shares will be priced between €3.90 and €4.90, but retail investors will have to commit to buying shares before the price is set. Institutional investors can specify how many shares they want to buy at specific prices.

If you want to buy shares

You must be a client of one of the following stockbrokers:

• Campbell O'Connor
• Cantor Fitzgerald
• Davy
• Goodbody
• Investec Wealth and Investment
  
• Merrion Private

If you are not already a client of one of these companies, you must become one by 16th June..

You must have the application form submitted and client funds in place by close of business on Monday 20th June.

The price will be set on Thursday 23rd June.



This is not an issue of new shares by AIB to raise capital for the company. This is a sale of existing shares in AIB by the Minister for Finance.

The stockbroker is not allowed to charge you for buying the shares, but you will have to pay 1% stamp duty on your purchase.

It's called an IPO, although I am not sure why. It is more like a placing of shares.

https://aib.ie/content/dam/aib/inve...ected/AIB-ITF-Announcement-FINAL-30052017.pdf

 

[Brendan Burgess]

Extracts from the FAQ


Will it cost anything to apply through a participating intermediary?
The participating intermediary is not permitted to charge you for applying in the Intermediaries Offer for AIB Shares.

How can I apply for AIB shares that are being sold as part of this IPO?
Retail investors resident in Ireland or the United Kingdom may apply for AIB shares being offered by the Minister for Finance through the Intermediaries Offer by applying to one of the participating intermediaries appointed by the Minister for Finance in connection with the Intermediaries Offer.

The minimum application amount for the Intermediaries Offer is €10,000 per investor.

Each retail investor can select their preferred participating intermediary. A participating intermediary can inform retail investors of how and when to make an application for the Intermediaries Offer; when funds will be required; when shares will be available to retail investors to deal (and how much it will cost); and what account charges may be applicable.

Where an investor is not an existing client of their chosen participating intermediary, the investor will need to enter into contractual arrangements with that participating intermediary to become a client of that intermediary by 5pm on 16 June 2017 and then apply for AIB shares under the Intermediaries Offer.

I already have AIB shares, what does this IPO mean for these shares?

The Offer involves the offer by the Minister for Finance alone of existing shares in AIB. AIB will not issue any new shares in connection with the Offer. Accordingly, existing AIB shareholders will not suffer dilution as a result of the Offer. Existing retail shareholders may apply for AIB shares by applying to one of the participating intermediaries appointed by the Minister for Finance in connection with the Offer through the Intermediaries Offer.

Will there be any incentives for investors or existing shareholders, such as bonus shares or discounts?
There will be no incentives such as bonus shares or discounts. All investors will pay the same price for AIB shares allocated to them pursuant to the IPO.

 

[Brendan Burgess]

The Prospectus is here:

https://aib.ie/content/dam/aib/investorrelations/docs/protected/AIB-Prospectus-final-12062017.pdf