AIB rights issue

F

foreigndub

Guest
There has been talk of the government increasing its share in AIB to over 92% by way of a rights issue (not sure what percentage of AIB the government hold now).
Can anyone explain how this is likely to work and what it means for the current shareholders and their shares?
Is it likely to be a share issue similar to the one BOI had a few months back (shareholders were offered the opportunity to buy or sell additional discounted shares based on their existing share holding)? Or are shares to be "sold" to the government and not offered to current shareholders (meaning a dilution of the current shareholders stake in AIB)?
 
AIB will probably seek to raise, say, €5b via a rights issue. The shareholders would be entitled to subscribe to it, but probably won't bother, so the government takes it all up.

Alternatively, they might simply offer new shares to the government without going to shareholders.

What did they do in the last capital raising?
 
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