Bank of America has kept a Buy recommendation and a €54 price objective on Metlen Energy & Metals (LON: MTLN) following the announcement that Metlen's infrastructure subsidiary, Metka, plans to pursue a listing on the Athens stock exchange.
The bank framed the planned IPO as a way to increase investor visibility of Metka's value, which today sits within the broader Metlen group. BofA set out scenarios that place Metka's post-IPO equity value between €1.46 billion and €2.05 billion - a range the bank highlighted as meaningful when compared with Metlen’s overall market capitalisation of about €6.4 billion.
According to BofA's analysis, the flotation is likely to raise roughly €250 million of fresh capital for Metka. In addition, the bank estimated that a potential disposal of existing shares held by Metlen could generate an extra €115 million to €265 million for the parent company. Metlen is expected to retain a controlling stake in the infrastructure unit following any transaction.
Metka’s recent operating metrics were also noted by the bank. The unit produced €689 million of revenue in 2025 and delivered EBITDA of €110 million. Its balance sheet included €166 million of net cash at that time, and the business carried a construction backlog of approximately €2.1 billion.
Metka operates across several parts of the project lifecycle - from construction activities to public-private partnerships and concessions, as well as facility management - giving it diversified exposure across infrastructure project stages.
In a nine-month trading update earlier in the month, Metlen said it was reviewing a potential Euronext Athens listing of Metka with the objectives of supporting the unit's growth and enhancing its financial independence.
Analytical context
- BofA’s scenario work is intended to illustrate how different IPO outcomes could translate into a standalone equity valuation for Metka within a €1.46bn-€2.05bn band.
- The bank’s estimates for proceeds include about €250 million of new capital for Metka and a possible €115m-€265m from any sale of existing Metlen shares in the unit, with the parent expected to maintain control.
- Operationally, Metka reported €689m of revenue, €110m of EBITDA, €166m of net cash and a backlog near €2.1bn - figures BofA used to underpin its valuation scenarios.
Market implications
BofA's view suggests the IPO could alter how investors value Metlen by isolating the infrastructure and concessions business, though the precise effect will depend on IPO terms and any sale of existing shares.