JB Capital values Novobanco at between €5.5Bn and €7Bn

A new valuation of Novobanco, this time by JB Capital, has upped the bank’s value to as much as €7Bn at the top end of the value scale.

The Portuguese bank is currently being prepared for an Initial Public Offer (IPO) but its main shareholder, the US fund Lone Star, has not ruled out selling all or part of the bank.

JB Capital puts the value of the bank at between €5.5Bn and €7Bn. This puts its value at close to similar sums for European banks of the same size and scale.

According to the business daily Negócios, the analyst Maksym Mishy explains that apart from its results and the viability of the bank’s strategy plan announced by CEO Mark Bourke, an improvement also in European bank negotiation multiples have made market conditions more attractive and justify the revision of Novobanco’s value to as much as €7Bn.

The new valuation would place the bank closer to its European rivals of the same size and scale on the Euro STOXX Index for Banks – which looks at the health and wealth of the world’s financial institutions. That said, forecasts from analysts say that on Portugal’s PSI stock market listing (should the bank be floated), the bank would become the sixth major listed company in Portugal, just below Millennium bcp.