Alþingi approves Framework for Íslandsbanki Public Offering

Alþingi has today approved amendments to Act No. 80/2024 on the Disposal of the State’s Remaining Shares in Íslandsbanki hf. A fully marketed offering is planned for the first half of the year, with Icelandic individuals receiving priority access. The legal framework enacted last year ensures that due consideration is given to objectivity, efficiency, equality, and transparency in the offering process.

The amendments to the law include the addition of a third order book, Order Book C. The Order Book provides regulated professional investors who invest on their own account and have assets exceeding 70 billion ISK, a more traditional allocation process and is expected to increase the volume of shares sold. The change follows expert advice of bookrunners with the aim of ensuring the participation of all investor groups and enhance interest from large investors, without infringing on the priority access of individuals.

Individuals will continue to be guaranteed priority and the lowest price in Order Book A. Order Book B will maintain the Dutch auction method, in which both individuals and legal entities can participate. With these three order books, the participation of all investor groups is ensured, increasing the likelihood that the state will receive a favorable price for its share.

Daði Már Kristófersson, Minister of Finance and Economic Affairs:

“The updated structure of the offering is better suited to fulfilling the legal requirements of efficiency, equality, objectivity, and transparency in its execution. It is important that the Treasury receives as much as possible for its share in order to reduce the government's debt ratio without affecting the priority of individuals, that will continue to be ensured.”

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