Gránit Bank to go public

Gránit Bank is preparing to launch its initial public offering (IPO) this week, with a retail subscription period scheduled to last for two weeks starting Tuesday. Trading of the bank’s shares is expected to begin on December 23.

According to Portfolio, shares will be offered within a range of HUF 13,172 to HUF 15,054. Though this pricing may appear modest in relation to its anticipated book value, it suggests a higher valuation than other traditional European banks.

Growth Prospects

As reported, Gránit Bank does not plan to issue dividends in the immediate future. However, it projects substantial growth over the coming years, potentially increasing its profitability significantly. The bank anticipates reaching a net income of HUF 110-122 billion by 2033, with expected annual growth rates of 18-19%. Currently, the bank holds approximately 6-7% market share in corporate lending and 1.5-2% in retail lending.

Ownership and Background

Founded in 2010 by Sándor Demján, Gránit Bank is notably partially owned (44.83%) by István Tiborcz, the son-in-law of Hungary's Prime Minister. The ownership structure has evolved over time, with employees holding a significant stake via an employee ownership program.

For more information, visit Telex.