An AIB initial public offering (IPO) is said to be fast approaching. So how can you buy shares in the stock when it eventually comes to market?
Firstly, it should be noted that not necessarily all of the 25 per cent stake in the bank will be up for grabs by everyone. The expectation is that somewhere in the region of 10-15 per cent will be set aside for small or retail investors.
In any event, if you are a small investor there are limited options when it comes to the outlet from where you buy your shares in AIB. The main players in Ireland are Goodbody, which is a joint bookrunner; Davy, which is the global coordinator; Investec, which is described as a co-lead manager; and Cantor Fitzgerald, which has been appointed as a participating intermediary.
When you’ve selected your broker it is expected that you will then have to commit to invest at least €10,000 in the stock. It’s worth noting that because a portion of the Government’s stake will be available for smaller investors, those people don’t have to have a prior relationship with a broker.
This isn’t always the case. Sometimes when brokers bring a new company to market they can choose to offer shares in that company to their retail clients first, and then to the wider public if they wish. With AIB it’s believed that one of the conditions for the various stockbrokers being involved is that they offer the shares to everyone and anyone.
Non-clients
A Goodbody spokesman said that Goodbody would set up a dedicated phone line for non-clients who wish to buy AIB shares when the IPO goes ahead. Those people will, however, have to go through the normal sign-up process.
The sign-up process with Goodbody requires individuals to be over the age of 18 and resident in Ireland or the UK. With that account, the minimum value of a person’s initial investment must be €1,000. But, as pointed out earlier, with AIB it’s expected you’ll have to be ready to invest €10,000.
So, as long as you have a proof of identity, a proof of address, fulfil the requirements to open a broker account and have €10,000 to spare you can buy your very own AIB shares when they come to market.
