The government of Iceland sells 45.2% stake in Islandsbanki. This took place on May 16, 2025, for an amount of almost 90.58 billion Icelandic crowns, which is equivalent to almost $703 million, thereby divesting a holding that was a legacy coming out of the 2008 financial crisis.
On May 14, Iceland had already launched the sale of a 20% stake within the lender in the process that went on to prioritize the domestic retail investors and later broadened the offering to also include the complete remaining stake within the bank because of high demand.
As per the Ministry of Finance, the offering went on to receive prominent institutional as well as substantial local demand, along with considerable interest coming from both institutional and retail investors.
Shares were offered at a fixed price of 106.56 Icelandic crowns and along with a 5% discount on the average price of the 15 trading days ahead of the launch of the sale to retail investors. The finance ministry also said that the investor appetite went on to substantially exceed the available shares, with total bids reaching almost 190 billion crowns, which was more than double the value of shares that were ultimately sold.
It is well to be noted that the Icelandic government had acquired 75% of the bank during the 2008 financial crisis, which completely ruined the country’s banking center and also plunged them into an economic recession.
As the government of Iceland sells 45.2% stake in Islandsbanki now, it is worth noting that it had already sold a part of its Islandsbanki stake in 2022.