By Elena Vardon

Novo Banco's shareholders have formally approved some matters related to an initial public offering, paving the way for it to float on Lisbon's bourse.

The Portuguese bank's chief executive said early last month that the lender could be ready for an IPO as soon as June, or in September. The exact timing is contingent on market conditions and approval from its shareholders, Mark Bourke said at the time.

Novo Banco was created in 2014 after the multibillion euro state bailout and breakup of Portuguese lender Banco Espirito Santo, once the country's largest bank. The Portuguese government retains 25% of Novo Banco, while private equity group Lone Star has held a 75% stake since 2017.

A spokesperson for the bank said matters such as the admission of shares trading on the stock exchange and the review of the articles of association were approved by shareholders at a meeting on Wednesday.

"These actions are a condition precedent for the IPO process, but the effectiveness of the resolutions is subject to the final decision of the selling shareholders," the spokesperson said.

Lone Star declined to comment.

Write to Elena Vardon at elena.vardon@wsj.com

(END) Dow Jones Newswires

June 04, 2025 09:46 ET (13:46 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.