DUBLIN (Reuters) - The Irish government’s proceeds from the initial public offering of Allied Irish Banks has increased to 3.4 billion euros after the government exercised an over-allotment option, the finance ministry said on Thursday.
Ireland last month sold 25 percent of the bank it nationalized almost a decade ago in a 3 billion euro ($3.4 billion) listing.
The exercise of the over-allotment option, which is designed to protect the share price in the event of it falling, increases the stake sold to 28.75 percent and adds 448 million euros to take the total proceeds to approximately 3.4 billion euros.
The share price opened on Thursday at 5.15 euros compared to the IPO price of 4.40 euros.
“Given the positive aftermarket performance of AIB’s share price since the IPO listing date, there have been no stabilizing transactions by the Stabilisation Manager, Deutsche Bank,” the finance minister said in a statement.
“As a result Deutsche Bank will announce that the Stabilisation period ended on the 5th July 2017 allowing the remaining 448 million euro proceeds from the AIB IPO to be remitted to the Exchequer.”
Reporting by Conor Humphries; editing by Jason Neely