Aer Lingus had set a cautious price range for its initial public offering (IPO) last week, coming in at the lower end of market forecasts and valuing the Irish State-owned airline at 773m.
Last week the airline had announced an indicative price range of 2.10 to 2.70 a share valuing the airline at between 601m and 773m before the injection of up to 563m in fresh capital. Analysts' estimates had previously valued the airline at 750m-950m.
The response to the discounted value has attracted investor interest and last night the airline conceded the demands of 14 workers at Shannon Airport who were refusing to sign up to a business plan for the company.
Aer Lingus sources suggested last night that they were confident they could sell off even more than the 60% of the airline being offered to the market on the basis of pre-float demand.
The Government is retaining 25% of the company while the employees own the remaining 14.9%.
The early indications of interest mean the Government will take in between 190m and 293m from the sell-off.
The formal IPO is on October 3rd but the key date is next Wednesday when the share price is finally set.
Investors are already indicating that they will buy the shares at the lower end of a range which goes from 2.10 to 2.70.
While international institutions have until until next Tuesday to order their shares, private investors must have payments with their brokers by 10am today.
Last night in Limerick, a group of Aer Lingus workers secured special re-gradings in return for acceptance of the airline's business plan.
Following demands for a review of grades, 14 clerical staff at the cargo depot in Shannon secured the job improvements in return for accepting a new productivity deal.
Within half an hour of their vote, coming up to 9pm, the group of unions at the airline were able to proceed with counting their separate ballot on restructuring the employee share scheme.
This resulted in an 83% majority in favour of a new employee share scheme into which they will contribute one half percent of the special 4% wage increase negotiated across the board.
The airline had already bought off the trade unions and had conceded several demands in recent months, including the special pay increase in addition to the terms of the national pay agreement; a topping-up of the company pension fund and an allocation of profits each years to ensure that the 14.9% stake in the company that was given to the workers would not be diluted.
