Spanish bank Ibercaja postpones IPO due to market volatility

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Ibercaja’s board “agreed to wait until the markets return to a situation of normality before continuing with its IPO,” the bank said.

A source close to the matter told Reuters on Tuesday that the plan now was for Ibercaja bank to list its shares on the Madrid stock market in April, delaying it from initially mid-February.

In a statement on Tuesday, Ibercaja just added that as part of its ongoing IPO preparations, it would move ahead with the presentation of its 2021 annual accounts in the coming weeks.

Spanish authorities gave former savings banks such as Ibercaja until the end of this year to go public or raise money to cut stakes held by foundations under the terms of a bank bailout after the 2012 financial crisis.

Earlier in January, Ibercaja had formally announced its intention to float.

Ibercaja, which has total assets of 58 billion euros ($66 billion), said then the offering would be for existing shares held by the Ibercaja Foundation, which currently owns a little more than 88% of the bank.

Through the IPO, the foundation would cut its stake in the bank to about 46%.

As banks are struggling with pressure from ultra low interest rates, Ibercaja is aiming to lift its return on tangible equity ratio, a measure of profitability, of currently 7.2% to about 9% in the medium term through cost-cutting measures and fees from its more profitable business areas.