“This successful I.P.O. has created a strong platform for the state to recover all the money it has invested in A.I.B. and to further dispose of our banking investments for the benefit of the Irish people,” he added.
After rescuing its banks, Ireland sought its own bailout, receiving €67.5 billion from the European Union and the International Monetary Fund. The country emerged from the international bailout program in 2013.
The offering of 679 million shares of Allied Irish Banks priced each at €4.40, the midpoint of its expected range, the government said. That would value the company at €12 billion, or about $13.3 billion.
After the offering, the Irish government will hold 71 percent of the bank’s shares if the overallotment is fully exercised. The government had owned more than 99 percent of the lender’s shares.
Conditional trading of the bank’s shares was expected to begin on the Irish Stock Exchange in Dublin and the London Stock Exchange on Friday, with full trading to commence on Tuesday.
Allied Irish Banks is the latest bailed-out lender in Europe to return to the public markets as its fortunes have improved.
ABN Amro returned to the public markets in 2015 as the Dutch government sold a 20 percent stake. And the British government exited Lloyds Banking Group in May, as part of its plan to end its ownership of British lenders bailed out during the financial crisis.
“I am delighted that the government has been successful in selling down their first material stake in A.I.B.,” Bernard Byrne, the Allied Irish Banks chief executive, said in a news release. “This is a landmark day for the bank and puts the total cash paid to the state since its bailout to almost €10 billion.”
Allied Irish Banks has been profitable in the last three years, reporting a pretax profit of €1.7 billion in 2016.
The bank is Ireland’s largest commercial and retail lender, with 2.3 million retail and small- and medium-size business customers. The bank operates in Britain and Ireland under the Allied Irish Bank and First Trust Bank brands.
Bank of America Merrill Lynch, Davy and Deutsche Bank are co-coordinators on the offering. Rothschild is acting as a financial adviser to the Irish government.