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Public Procurement Contracts Data

Dáil Éireann Debate, Thursday - 1 June 2017

Thursday, 1 June 2017

Questions (64)

Kevin O'Keeffe

Question:

64. Deputy Kevin O'Keeffe asked the Minister for Finance the tendering process his Department has undertaken and the criteria needed to enable stockbrokers to obtain the initial public offering for the sale of shares at a bank (details supplied). [26311/17]

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Written answers

As the Deputy will be aware, on Tuesday evening I released an 'Intention to Float' (ITF) announcement, indicating that my Department is preparing for the sale of around 25% of the State's shareholding in AIB. This offering will include an opportunity for retail investors to participate on the same terms as institutional investors. The structure of the retail element is informed by previous privatisations and the changes in the regulatory environment for retail investors in recent years. As such, there will be no active marketing of the shares and the minimum required order size will be €10,000. Prospective retail investors will need to be a client of a participating intermediary broker. Further details are available on the AIB website here: https://aib.ie/investorrelations/private-investor.

I would strongly encourage any prospective retail investors to take appropriate independent financial advice before making any investment decision given the risks associated with investing in an equity instrument.

The criteria required of Participating Intermediaries include the requisite regulatory authority to (i) provide advice to retail customers; (ii) accept client funds; and (iii) accept client orders. They are required to adhere to the terms of participation as set by the Department of Finance, AIB and the underwriting syndicate. These terms include restrictions on commission charges, compliance with anti-money laundering regulations, limitations on marketing activities and other obligations to ensure the smooth operation of the IPO process. The Participating Intermediaries are required to have a physical office in Ireland to facilitate those who wish to open a new account with whichever such intermediary they so choose.

Further details on the participating intermediaries can be found here: https://aib.ie/investorrelations/protected/appointed-intermediaries.

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