moneymakeover
Registered User
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Can people advise if / when Government decides to offload the bank shares
AIB 70%
BOI 14%
will they use rights issue?
AIB 70%
BOI 14%
will they use rights issue?
Government sale of bank shares: rights issue
- Thread starter moneymakeover
- Start date
Hi,
No, the ordinary shares already exist.
Take AIB for example, when the IPO was completed last year, 2.7bn shares were admitted to trading on the stock exchange, but the government only sold about 25% of them. But if you look at the market cap, it's about 13bn, which is based on all shares. The government just needs to sell the shares.
No, the ordinary shares already exist.
Take AIB for example, when the IPO was completed last year, 2.7bn shares were admitted to trading on the stock exchange, but the government only sold about 25% of them. But if you look at the market cap, it's about 13bn, which is based on all shares. The government just needs to sell the shares.
Brendan Burgess
Founder
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The purpose of a Rights Issue is to raise funds for the company itself. Say CRH were to make a major acquisition, they would issue new shares to raise some or all of that funding.
When AIB got into real difficulty, it had a huge Rights Issue of sorts. Effectively issuing billions of new shares which the Government bought.
The Government now wants to sell those shares and get back some of the cash it put into AIB.
Brendan
When AIB got into real difficulty, it had a huge Rights Issue of sorts. Effectively issuing billions of new shares which the Government bought.
The Government now wants to sell those shares and get back some of the cash it put into AIB.
Brendan