Iceland's state holding company said today it had sold shares in lender Islandsbanki worth 52.65 billion Icelandic crowns ($408m) in an oversubscribed auction.
Islandsbanki, formerly Glitnir, was one of three lenders that failed within days of each other in 2008, prompting a state takeover.
A total of 22.5% of Islandsbanki's outstanding share capital was sold, corresponding to 450 million shares, which were sold at 117 Icelandic crowns per share, Icelandic State Financial Investments (ISFI), said in a statement.
"The offering was multiple times oversubscribed at the final offer price with substantial interest from both domestic and international investors," ISFI said.
As part of efforts to normalise Iceland's financial sector and reduce the state's ownership, Iceland sold a third of its stake in Islandsbanki in June last year, the largest initial public offering in the country's history
The finance ministry last week authorised ISFI to sell its remaining 65% stake in Islandsbanki in several steps.
After the auction, which was initiated on Tuesday, the state owns a 42.5% stake in Islandsbanki.
The transaction will be finalised on March 28.
