Icelandic lender Íslandsbanki has announced the completion of the largest initial public offering (IPO) in the history of the country.

The move reduces the government’s stake in the lender to 65%. Domestic investors will hold around 24% interest in Íslandsbanki, while international investors will own the remaining 11% stake.

In the offering, more than 636 million ordinary shares will be sold at ISK79 per share. An additional 63 million shares may be offered assuming full exercise of the overallotment option.

This will value the offering ISK55.3bn ($457m), making it the largest IPO in Iceland’s history. Íslandsbanki’s market capitalisation will stand at ISK158bn ($1.3bn).

The total shareholder base of the bank will be around 24,000, following the offering.

Iceland Minister of Finance and Economic Affairs Bjarni Benediktsson said: “It is pleasing to see the results of Íslandsbanki’s IPO. High demand and public participation are particularly enjoyable, as Íslandsbanki’s shareholder base will be the largest of all listed companies in Iceland.

“This is not least due to the decision to allow subscriptions down to ISK 50,000 and guarantee a minimum allocation of up to ISK 1 million. The sale is profitable for the Treasury and will be helpful for the recovery in the near future.”

Last month, Iceland first announced plans to launch Íslandsbanki IPO in the second quarter of this year.

The move was part of its efforts to reduce government holding in the lender.