State to sell 5% of its shares in AIB

Move announced by Michael McGrath will reduce state’s stake in bank from 45.8 per cent to 40.8 per cent.

AIB: Shares at the bank were valued at €4.06 each by close of trade on Monday. Picture: Leah Farrell/

Michael McGrath, the Minister for Finance, has announced plans to sell roughly 5 per cent of the state’s shares in AIB by way of placing to institutional investors.

The move is expected to reduce the government’s shareholding in the bank will by 131 million - shrinking its stake from 45.8 per cent to approximately 40.8 per cent.

Share placing is when equity shares are offered to the market in a short time period of one ...