State raises €593m by further reducing shareholding in AIB to under 30%

State's shareholding is falling below the 30% threshold for the first time, which is often considered by markets to be a controlling interest

The placing is expected to comprise around 121 ordinary shares, representing approximately 5% of the issued ordinary capital of AIB. PIC: Conor Ó Mearáin / Collins Photos

The State has further reduced its shareholding in AIB, disposing of approximately 5% of the bank's shares. 

The shares were sold for €4.90 each, with total proceeds from the sale generating almost €593m for the State.

The placing comprised around 121 ordinary shares, representing approximately 5% of the issued ordinary capital of AIB. 

The disposal saw the Irish State's shareholding of AIB reduced from 30.5% to 25.5%.

Its latest disposal means its shareholding is falling for the first time below the 30% threshold, which is often considered by markets to be a controlling interest.

The State's shareholding of AIB has decreased significantly in the last two years, falling from 71% at the beginning of 2022. 

The State continues to have a shareholding in AIB worth approximately €3.1bn.

Proceeds generated from the latest phase of the AIB trading plan amount to approximately €617m, the Department said. In total, approximately €1.45bn has been raised from the AIB trading plan since it became operational in January 2022.

The Minister also said that he intends to extend the Government's share trading plan by a further six months, bringing it up to January 2025. 

In May, Minister McGrath announced the State would reduce its shareholding in the bank to under a third, with the lender buying back almost €1bn in its shares from the Government.

During the bank bailouts following the financial crisis, the State invested about €21bn in AIB to rescue it.

The Finance Department said details of the Placing Price and the exact number of Placing Shares will be announced in due course.