Ukraine’s government plans to sell a 7% stake in state-owned PrivatBank to Ukrainian citizens in a move aimed at raising funds for the state budget and broadening public participation in the country’s largest lender, reported Ukraine Business News.

The cabinet of ministers is developing a mechanism for the partial privatisation of PrivatBank, under which 7% of its shares would be offered to individuals through an auction conducted on the Diya government services app. The sale is expected to raise around UAH18bn ($420mn) for the budget.

If implemented, the initiative would mark the first time in Ukraine’s history that shares in a large state-owned enterprise are sold directly to citizens via a digital platform, the government said.

Under the proposed rules, only Ukrainian citizens would be eligible to participate. The maximum investment per person would be capped at UAH400,000 ($9,200), equivalent to 1,333 shares at the starting price. Investors would be required to deposit funds into a designated account at a state-owned bank before taking part.

The auction is expected to run for one month and will operate on a cut-off basis, meaning shares will be allocated once bids are finalised. Purchased shares would be credited to investors’ accounts and could then be freely traded on the stock exchange.

The starting price per share has been set at UAH300 ($7). PrivatBank’s authorised capital comprises 736mn shares, with 51.5mn earmarked for sale. The government expects demand to push the price up to around UAH350 during the auction.

Investors would be entitled to dividends, with annual returns estimated at 10–12%, according to the plan.