PTSB to announce plans for stock market float as part of capital raising plan

Permanent TSB will this morning announce its intention to complete a stock market IPO as part of its €525 million capital raising plan when it releases a trading update this morning.

It is understood the bank will press the button on an IPO within the next two to three weeks, with likely listings on the main markets in Dublin and London.

The Irish Times has learned that the State's shareholding in PTSB will not drop below 75 per cent when the IPO is completed. This includes the Government also selling some of its shares in the bank in parallel with PTSB's own capital raising. Weekend reports suggested that the State could raise up to €300 million from a disposal of shares.

This is far removed from the initial indications that investors would want up to 40 per cent of the bank in return for supporting its fundraising plan and highlights the success of the road show conducted by PTSB's management team in recent months, led by chief executive Jeremy Masding.

Starting late last year, the bank has met about 100 different potential investors as part of its funding roadshow.

The strong interest in PTSB from international investors is good news for the Government as it weighs up its options for AIB, which is 99.8 per cent owned by taxpayers.

The Minister for Finance Michael Noonan has indicated that an IPO of AIB is possible within the next 12 months as a step to getting a return on the State's €20.8 billion bailout.

PTSB, currently 99.2 per cent owned by the State, announced last month that it intended to raise €525 million in new capital. Some €125 million of this would be used to plug a capital hole identified in European Central Bank stress tests last October, while €400 million is to be used to re-purchase contingent capital notes held by the State.

The bank last week won approval from shareholders to raise €525 million in capital, comprising €400 million in new shares and €125 million through an Additional Tier 1 instrument.

At the end of last week, it completed a 100-for-one consolidation of its ordinary shares to help pave the way for its capital raising. PTSB has yet to repay any of the €2.7 billion it received from the State in 2011.