Nova Ljubjanska Banka
It is the largest Slovenian bank.
In 2013 taken over by the Slovenian Government, fully restructured and recapitalized
IPO closed last week. Launched at 51.5 Euro per share, now trading at 56.6.
Just spoke to Wood analyst (I can get you his contact details). He called the stock “Safety Heaven in current markets”. The reason is it is still very cheap.
NLB now trades at 0.7 P/B. With RoE of 18% and Div Yield at 12% it should trade at least around 1.1 P/B. That is what Wood analyst thinks. The reason for this is simple – there is no research coverage, yet. The syndicate members (JP Morgan, Citigroup, Deutsche and Wood) are in blackout period (until 20/12) – they can issue research only after that date. There are three catalysts in pipeline which should help to rerate the stock:
There is a CEE Equities conference early December organized by local broker Wood and Co in Prague. 150 CEE oriented investors are attending and NBL is one of the presented companies. Last year I saw 30% price increase on similar situations during the conference
The research reports will be published on 20/12
The prospectus and other documents can be found here: https://www.nlb.si/public-offering-of-shares-prospectus
Peers ratios for comparison
NLB Valuation based on Peers
|Per share data|
|Price to book||0,69|
|Net profit 2018E||10|
|Target P/BV||Price per share|