U.S. private equity firm Advent International Corp. has begun preparations for an IPO or sale of Austria-based Addiko Bank AG, Reuters reported, citing people close to the matter.

Advent is working with Goldman Sachs and Citi on exiting Addiko, according to the Oct. 15 report. The process will mainly focus on a potential IPO, but will also allow interested buyers to bid for the bank.

The listing or sale could take place in 2019, according to one of the sources.

Addiko Bank, which emerged from the collapse of Hypo Alpe-Adria and is now a digital challenger bank, is said to have a book value of about €850 million. Although the lender's market value is uncertain, European peers trade at an average of 0.85x book value, the news agency noted.

Addiko Bank comprised the Balkan operations of the former Hypo Alpe-Adria-Bank International, now Heta Asset Resolution AG. It operates in Slovenia, Croatia, Serbia, Montenegro and through two units in Bosnia-Herzegovina.