MILAN, June 5 Fineco, the online bank unit of Italian lender UniCredit that is preparing to list on the Milan stock market, could be worth up to 3.5 billion euros ($4.8 billion), according to reports from two investment banks involved in the operation.
UniCredit plans to list between 25 percent and 35 percent of Fineco by the end of July to bolster its balance sheet as it undergoes a Europe-wide health check of lenders.
UBS, global coordinator of the initial public offering, said in a confidential report to investors obtained by Reuters that the equity valuation of Fineco stood in a range of 1.9 billion euros to 2.6 billion euros.
Mediobanca, which is acting as bookrunner in the listing, said in its own report that a discounted cash flow analysis gave a value of 2.6 billion-3.3 billion euros while the peer group multiples pointed to a fair value range of 2.4 billion-3.5 billion euros.
Fineco, the top online broker in Europe by number of executed orders, said in a presentation this week it was well positioned to tap further into the lucrative Italian market, where 3.7 trillion euros of household wealth are invested in financial assets.
That represents around 40 percent of total household wealth compared with 60 percent in other major economies. ($1 = 0.7345 Euros) (Reporting by Elisa Anzolin, writing by Silvia Aloisi; Editing by Lisa Jucca)