International investors commit to Íslandsbanki
The plan is to sell around 636 million shares at a guide price of 71 to 79 krónur per share. The selloff of government-owned shares in the bank is taking place both on the general market to private and institutional investors within Iceland, and also in direct private sale to specific investment institutions in various other countries.
Overseas investment funds have already committed to invest in the bank, according to the statement—which explains that funds managed by Capital World Investors and RWC Asset Management LLP have committed to buy nearly 77 million and 31 million shares, respectively.
Iceland’s Gildi and Lífeyrissjóður verzlunarmanna pension funds have committed to buy around 46 million shares each. Together, these four investments are considered the pillars of the stock offering.
The offering continues until Tuesday 15th June, and will be followed by a general stock market floatation of remaining Íslandsbanki shares.
Finance minister Bjarni Benediktsson said last night he is pleased to see overseas investors commit to Íslandsbanki, and that based on an expected total value of 150 billion krónur, the current sale could generate 50 billion krónur for the treasury, which could be an important tool to limit national debt during the ongoing period of payments imbalance due to the pandemic.