Allied Irish Banks float could see Irish taxpayer paid back in full

Allied Irish Banks' (AIB) float will raise up to €3.8bn (£3.4bn) for the Irish taxpayer and values the state-owned lender at €13.3bn, according to a stock market circular released today.

The dual listing, in London and Dublin, will see the Irish government's 25 per stake priced between €3.90 and €4.90 per share.

The pricing of the deal is expected to be concluded on 23 June.

Ireland’s minister for finance Michael Noonan said in January that the flotation of AIB was likely to come in May or June.

AIB has returned €6.5bn to the Irish taxpayer by way of capital, fees, coupons and dividends, since being bailed-out by the state in 2010.

The government has invested around €20.8bn in the lender. Today's valuation means if the government were to fully exit at the top end of pricing, the Irish taxpayer would almost be repaid in full.

Bank of America Merrill Lynch, Davy and Deutsche Bank acted as joint global co-ordinators. Citigroup, Goldman Sachs J.P. Morgan Cazenove and UBS were joint bookrunners. Investec acted as co-lead manager. Morgan Stanley was the lead adviser in the UK, Goodbody performing the same role in Ireland.

Commissions paid to listing underwriters are expected to total up to €12m, while advisory fees are estimated to be up to €4m. AIB said it will pay a further €25m of aggregate expenses in connection with the float.

AIB operates 136 retail branches, 46 central branches, 15 retail campus outlets and eight sales and advisory outlets.

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