There could be an extra €3bn on the way for the State after the sale of the Government's stake in AIB today.

Shares are expected to peak at €4.40 each, which is less than originally expected.

This values the bank at €11.94bn - which is 56% higher than Bank of Ireland's market valuation.

AIB's floatation is the largest IPO in Europe so far in 2017.

Private retail investors will account for some €300m of the sale - that's below the €500m which had been requested in this category.

Minister for Finance Pascal Donohoe said yesterday that he is "very happy" with the IPO process.

During the financial crisis, the state obtained a 99% stake in AIB after pumping €20.8bn into the bank.