Published by Global Banking & Finance Review®
Posted on May 6, 2025
2 min readLast updated: January 24, 2026
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Novo Banco plans an IPO in June or September despite market volatility. The bank, 75% owned by Lone Star, is preparing for the offering amid global trade tensions.
LISBON (Reuters) -Portugal's fourth-largest lender Novo Banco plans to go ahead with an initial public offering (IPO) possibly in June or September despite market volatility caused by global trade tensions, Chief Executive Mark Bourke told Reuters on Tuesday.
The unlisted lender, which is 75% owned by U.S. private equity fund Lone Star, in February began preparations for floating up to 30% of its capital, although sources told Reuters that a full sale was also being considered.
Bourke said the bank had a "very positive broad-based performance" in the first quarter. It earlier confirmed its full-year guidance and on Monday announced a capital reduction in order to give shareholders an additional 1.1 billion euros in dividends, which Bourke described as a "huge milestone" for the IPO.
The bank still needs to complete tasks such as preparing a prospectus, he said, in order to be ready for the June or September window, depending on markets and the final go-ahead from shareholders.
Bourke said last month - just after U.S. President Donald Trump announced his planned import tariffs, most of which remain suspended - that the bank was on a week-long roadshow with around 30 international investors and there were no cancellations.
He also said uncertainty over the outcome of Portugal's parliamentary election on May 18 should not be an obstacle to the IPO because policies have remained fiscally responsible, regardless of who is in power.
(Reporting by Sergio Gonçalves, editing by Andrei Khalip, Kirsten Donovan)
The main topic is Novo Banco's plan to proceed with an IPO despite market volatility.
The IPO is planned for June or September, depending on market conditions.
Novo Banco is 75% owned by the U.S. private equity fund Lone Star.
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