AIB's shareholders are set to vote on its capital re-organisation plan which will significantly reduce the values of shareholdings in the bank at an emergency general meeting on December 16th.

This is part of a plan for AIB to re-float on the stock market during 2016 - and for the State to divest some of its 99.8% stake in the bank. Last week AIB released capital organisation plans to consolidate its stocks.

As part of its capital restructuring, AIB will reduce the number of new ordinary shares to approximately 2.7 billion - down from 523.4 billion.

Investors will offer one share for every 250 held by investors. Shareholdings will be rounded up to the nearest ordinary share, so smaller shareholders who own fewer than 250 shares currently will still retail one share and remain on the share register.

The Government plans to convert some of its preferred shares into ordinary stock at 1.7 cents. This will allow the government to convert some of its €3.5bn of preferred stock into equity.

This reorganisation will see retail shareholders who hold about 1 billion shares lose up to 90% of their value.

Share holders have been warned repeatedly that the bank is overvalued.