Novo Banco in Portugal Prepares for One of Europe's Largest IPOs of the Year

Novo Banco in Lisbon is gearing up for a potentially major initial public offering (IPO) in Europe this year. CEO Mark Bourke notified employees via email about plans for the IPO either by the end of the second quarter or the end of the third, depending on market conditions.

Following guidance from Lone Star, Novo Banco aims to pursue the IPO in collaboration with its shareholders over the next few months. The bank, established in 2014 from the collapsed BES, is mostly owned by Lone Star since 2017, with the remaining shares held by Portugal's resolution fund and the state.

While Lone Star had considered a full sale or IPO, an IPO now seems more likely as the CEO prefers to maintain Novo Banco's independence. The bank is expected to float 25-30% of its capital in the IPO, although specifics on the stock exchange for listing and the desired capital percentage remain undisclosed.

Exploiting the favorable equity market, various companies in the region have pursued IPOs, with a recent example being a travel tech company that raised 860 million euros in an IPO on the Spanish stock market.