Almost 228 million shares in Aer Lingus were traded in Dublin as the airline made its stock market debut. The shares, which opened at €2.20, closed up 8% at €2.38.
The opening price was at the lower end of the €2.10-2.70 price range initially indicated, valuing the airline at €1.1 billion.
Details of the flotation were agreed by advisors early this morning. The Government retained a 28% stake and will receive €200m in cash from the deal. The company will net around €500m, which will help it raise money for a new fleet of aircraft.
It is believed there was strong demand for the shares from financial institutions. Pension funds were willing to buy into the airline but not at high prices.
A statement said employees and former employees had agreed to buy just over 2% of the airline, while members of the public will hold 11.6% when the airline floats. 40% will be held by institutions. 3% of the Government's shareholding is set aside to go to staff in a profit share arrangement.
