The shares rose as much as 58 percent to 63 euro cents compared with its reference price of 40 cents. The stock traded at 56 cents at 12:53 p.m. in Madrid, valuing the bank at about 791 million euros ($1.02 billion).
Liberbank, formed from a merger of three former savings banks including Cajastur and Caja Cantabria, took 124 million euros in state aid after Spain sought 41 billion euros in European bailout funds for its banking system last year. The listing of 30 percent of the Madrid-based lender is the first since Banca Civica SA and Bankia SA (BKIA) in 2011.
Under the terms of a recapitalization plan approved by Europe, Liberbank exchanged 830 million euros of junior debt for convertible bonds and shares issued at 1.11 euros apiece. The bank is offering investors who hold onto their shares for two years annual interest of 6 percent on their holdings based on the book value of 1.11 euros a piece.
Liberbank has about 47 billion euros of assets and 1,158 branches.
To contact the reporter on this story: Charles Penty in Madrid at firstname.lastname@example.org
To contact the editor responsible for this story: Frank Connelly at email@example.com