‘We have been ignored for most of our life,’ says FTSE 100’s newest bank

Lion Finance, once a forgotten player on the London Stock Exchange, is now gaining attention after being promoted to the FTSE 100 index. The bank, formerly known as Bank of Georgia, has seen its shares surge over 500% since the beginning of 2022, reaching 13,348.13p today. However, before this recent rise, the company spent years struggling to gain traction, floating in 2012 at just 666p and fluctuating around the 1,000p mark until 2021.

Archil Gachechiladze, the bank's CEO, admits that for most of its existence, Lion Finance was overlooked. But that changed in March when the bank was promoted to the FTSE 100, making Gachechiladze one of the youngest chief executives of a FTSE 100 company and the second-longest-serving blue-chip bank boss. The promotion has attracted over 200 investors to express interest in the group's capital markets event in June, and the stock has gained over 40% year-to-date, making it one of the top-performing blue-chips this year.

Gachechiladze attributes the increase in interest to a growing understanding of the macroeconomic environment in Georgia and Armenia, both of which are experiencing strong economic growth. Despite the political crisis in Georgia, which has strained the country's ties with the West and sparked protests, Gachechiladze says the company's business has remained unaffected.

Analysts are also bullish on the bank, with Cavendish and KBW both setting a "Buy" rating and a target price of around 13,500p. Gachechiladze insists that London is the right place for the company, despite it trading at a discount compared to its Eastern European peers. He emphasizes the market's understanding of Lion Finance's market and the presence of region-focused investors, who are reaping the rewards of their diligence.