Novobanco moves towards IPO despite market turmoil over tariffs

The volatility in the market caused by US tariffs at the start of April has not dissuaded Novobanco shareholders and directors from pressing ahead with a planned Initial Public Offering (IPO) for this year.

According to the bank’s CEO, Mark Bourke in an interview with the Wall Street Journal, “despite there having been enormous volatility in the markets, we have had 29 or 30 meetings and no one cancelled”.

Mark Bourke said interest in the IPO was likely soon, the prospectus was being designed, and the CEO believes that next month will bring the first opportunity to float shares.

“We are in a position in which we could get a window (of opportunity) in June”, he added.

In March, both Mark Bourke and the bank’s CFO Benjamin Dickgiesser were in London and New York where they booked dozens of meetings with investors.

Mark Bourke’s interview in the New York Times was published on the same day on which both he had the CFO were quizzed by analysts in a conference call about the bank’s first quarter results that showed a profit of €177.2 million.

The US fund Lone Star, which has a 75% share in the bank, intends to disperse between 20-25% of the 75% it holds.

The capital dispersal dates on the stock market have not been set, although Novobanco suggests two possible dispersal times: one in the summer or one at the end of September.