AIB demand remains strong as stock tumbles

The Government, through its advisors, has already received more than enough orders from investors to proceed with the sale of 25% of its near total shareholding in AIB.

In an early indication of strong investor demand, the partial IPO was fully subscribed yesterday — the first day brokers marketed the shares to potential investors. They will continue to market the stock for the next 10 days in a bid to secure the highest possible share price.

While only around 0.1% of AIB is currently owned by retail investors, the bank’s share price opened trading yesterday at a price of €6.50. That soon changed, with the share price plummeting by nearly 30% as investors heeded previous warnings from Finance Minister Michael Noonan that the bank’s stock was overpriced.