Ireland's permanent tsb prices IPO at 4.50 euros per share - source

DUBLIN, April 27 (Reuters) - Permanent tsb (Berlin: IL0A.BE - news) has raised 400 million euros ($436 million) in a share offer priced at 4.50 euros per share, a source familiar with the transaction said, valuing the first Irish lender to launch a public share sale since the financial crisis at 2 billion euros.

The smallest of Ireland (Other OTC: IRLD - news) 's three remaining domestically-owned banks had set a range of 3.90 to 4.50 euros per ordinary share for the issue, a key test of investor appetite for the sector and for the country's No. 2 lender Allied Irish Banks ahead of a possible stake sale in the next 12 months.

The government, keen to recoup some of its investment in PSTB ahead of an election next year, sold an additional 98 million euros worth of shares to cut its stake to 75 percent from 99.2 percent to meet stock market requirements, the source said on Monday. ($1 = 0.9180 euros) (Reporting by Padraic Halpin; Editing by Carmel Crimmins and David Holmes)