PrivatBank shares may be traded on the stock exchange: what the National Bank is planning
12 June 05:53
Ukraine is considering the possibility of taking one of the country’s largest state-owned banks—PrivatBank—public. This involves a potential initial public offering, which could take place as early as next year. The National Bank has cited the Ukrainian or Polish stock markets as possible venues for such a move.
This was reported by NBU Deputy Governor Dmytro Oliinyk in an interview with Business Insider Polska, according to "Komersant Ukrainian"
According to him, Western financial groups are already showing interest in Ukrainian state-owned banks.
PrivatBank may be listed on the stock exchange
The National Bank does not rule out that Ukraine will attempt to conduct IPOs for certain banks in the near future. One of the potential candidates could be PrivatBank—the most profitable state-owned financial institution.
“We would like to try, perhaps as early as next year, to conduct IPOs for some banks. We are even considering the possibility of using the infrastructure of the Ukrainian or Polish stock market to sell shares of the most profitable institutions, such as PrivatBank,” said Dmytro Oliinyk.
An IPO, or initial public offering, involves selling a portion of a company’s or bank’s shares on the stock exchange to a wide range of investors. For the state, this could be one way to raise funds and gradually reduce its stake in the banking sector.
Why the Warsaw Stock Exchange is being considered
The Polish stock market could be one of the potential platforms for listing PrivatBank’s shares. The Warsaw Stock Exchange already has experience working with Ukrainian issuers.
Shares of several Ukrainian companies are traded there, including Agrotone, Astarta, IMC, KSG Agro, and MLK Foods.
That is why the Polish market may be more familiar to European investors and potentially attractive for listing the Ukrainian bank’s shares.
PrivatBank may enter the European market
Previously, PrivatBank’s management also did not rule out the possibility of the bank entering the European market. Such a move could be part of a broader strategy for the bank’s development and its integration into Europe’s financial infrastructure.
PrivatBank remains one of the key players in the Ukrainian banking sector, with a large customer base and a well-developed digital infrastructure. These factors could increase investor interest in a potential IPO.
Which other banks are being prepared for privatization
Dmytro Oliinyk also confirmed that the privatization of Ukrgasbank and Sens Bank is planned for 2026 or 2027.
“Our task is to sell these banks at market price as quickly as possible,” said the deputy head of the NBU.
According to him, these financial institutions may be of interest to foreign investors, primarily financial groups from European Union countries.
Who might buy Ukrainian state-owned banks
The National Bank expects that Western financial groups will show the greatest interest in the privatization of state-owned banks. These are companies that are already operating in European markets or are actively expanding their presence there.
“The head of a major foreign bank told me that they are already engaging an investment advisor to prepare a proposal. I do not expect significant interest from Ukrainian investors, as acquiring such banks would require capital in the amount of 200–300 million euros,” Oliinyk noted.
In his view, buying such banks will require significant resources, so Ukrainian investors are unlikely to be able to compete seriously with large international groups.
What might the valuation of the banks be?
The NBU believes that Ukrgasbank and Sens Bank are in good shape in terms of customer experience and project financing. This could influence their market valuation during the sale.
“These banks are in very good shape in terms of customer experience and project financing, so I believe their valuation should exceed their book value—perhaps amounting to about one and a half times that figure,” Oliinyk added.
What the NBU’s plans mean
Plans for PrivatBank’s IPO and the privatization of other state-owned banks signal Ukraine’s intention to gradually reduce the state’s role in the banking sector. This approach could help attract private capital, increase competition, and bring the Ukrainian financial market closer to European standards.
At the same time, final decisions regarding the timing, format, and venue for the share offerings will still depend on market conditions, investor interest, and the banks’ own readiness to take such steps.
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