Postal Savings Bank is going public today hoping to fetch 590 million euros

Greece’s Postal Savings Bank (TT) will go public at 11.3 to 13.5 euros a share, offering a 31.24 percent stake and fetching the government up to 591 million euros, the bank said yesterday. Greece will sell up to 30 percent of TT via the IPO, and another 1.24 percent through a private placement with bank staff. Based on the price range, the shares will be offered at between 15.27 to 18.24 times last year’s earnings. Greek banks currently trade at 14.8 times 2006 earnings, according to Reuters Estimates. The divestment is part of the government’s 1.65-billion-euro privatization agenda for 2006 to pay down public debt, one of the highest in the eurozone as a percentage of gross domestic product (GDP). The initial public offering will run from today to Friday. Coordinating lead underwriters for the domestic offering are National Bank and Piraeus Bank. TT’s shares will start trading on June 7. TT will be the 15th bank to list on the Athens Stock Exchange. It has a network of 136 branches, 130 ATMs and 1,224 workers, ranking seventh among Greek banks by deposits. It owns 10 percent of the Greek Postal Service with access to its 820 post offices. The 104-year-old savings bank, which historically lent money to civil servants for home purchases, has a 9.6 percent market share in deposits and 5 percent in mortgages. It had net profits of 122.5 million euros last year. (Reuters)