Permanent TSB plans to price its IPO at between €3.90 and €4.50 a share with the stock being admitted to the Dublin and London stock exchanges on May 5th.
At the mid-point of this range, the company would have a market cap of €1.934 billion.
The company plans to raise €400 million with potentially additional shares being sold by the Government to achieve a free float of 25 per cent. The final pricing will be announced on April 28th.
The State owns 99.2 per cent of PTSB and will receive the €400 million being raised by the bank. If it retains a 75 per cent stake after the IPO, this holding would be worth €1.45 billion. PTSB received a €2.7 billion bailout from taxpayers in 2011.
The €400 million being raised by PTSB is being used to purchase the contingent capital notes held by the State. PTSB said this morning that it would pay a premium to repurchase these notes of €10.544 million.
It said the terms were deemed “fair and reasonable” by its board and it would achieve a saving on future interest payments of €49 million minus the premium being paid. The notes have an annual coupon of 10 per cent and were due to expire by July 2016.
PTSB is also raising €125 million by way of an additional Tier 1 instrument, which will be used to plug a capital hole identified in European Central Bank stress tests last October.
