Novobanco being readied for IPO for the second half of June

Novobanco is working with consultants to have everything ready for a stock market floatation or IPO (Initial Public Offer) for the second half of this month.

That, of course, provided its main shareholder, the US equity fund Lone Star (75%) decides to advance with the floatation on Lisbon’s Euronext.

According to the online news source ECO, Lone Star has yet to make a final decision, but the IPO option is gaining force since selling the bank directly to either a Spanish or French banking group is far from certain, with a lot of opposition among government and business circles for a sale to a Spanish banking group.

Various entities have been helping the bank to prepare for the IPO in recent months including the Bank of America, Deutsch Bank, JPMorgan Chase, BNP Paribas, Jefferies & Keefe, Bruyette & Woods, and Linklaters.

Lone Star is considering a dispersal of between 25% and 30% of its capital on the market in what could become the largest IPO of a financial institution in Europe in a decade.

The Spanish investment house JB Capital has valued the bank at between €4.8Bn and €6.2Bn with the sale of 25% of the bank bringing in over €1Bn to shareholders