Italy's Banca Progetto aims to list in Milan by early 2024

MILAN, Sept 19 (Reuters) - Italian challenger bank Banca Progetto is aiming to list on the Milan stock exchange by the first quarter of next year, two sources close to the matter said on Tuesday.

The bank is working with banks Citi, Intesa Sanpaolo and UBS as well as advisory firm STJ Advisors to join a market segment known as STAR which requires companies to have a 35% minimum free float, the sources said.

Banca Progetto reported net earnings of 38 million euros ($40.6 million) in the first six months of this year.

Owned by investment firm Oaktree and led by veteran former UniCredit executive Paolo Fiorentino, Banca Progetto specialises in lending to small businesses with state guarantees.

The company is looking for a valuation of around 400-500 million euros, one of the sources said. That range is in line with the price tag the bank had aimed for last year when Oaktree explored a possible sale with the help of Morgan Stanley.

Oaktree launched Banca Progetto in 2015 after buying 54.2% of small local bank Banca Popolare Lecchese from Nuova Banca Etruria, which was being liquidated. ($1 = 0.9355 euros) (Reporting by Elisa Anzolin and Valentina Za Editing by Keith Weir)