Spanish travel technology company HBX Group, whose brands include Hotelbeds, is preparing to launch a €1 billion ($1.04 billion) initial public offering in the coming weeks, two sources with knowledge of the process said.

The company has been planning an IPO for more than a year, Reuters has previously reported. It has recently been sounding out investors and could file its intention to go public as early as next week if the reception is positive, said one of the sources, who spoke on condition of anonymity because the talks are private.

The company and its shareholders -- which include private equity firms Cinven and EQT , as well as Canadian pension plan CPP Investments -- have been considering a listing on the Madrid stock exchange, Reuters reported earlier.

HBX Group declined to comment.

The company would be the first to launch an IPO in Europe this year, following a slight recovery in trading last year. It comes at a time when analysts have become more positive on European equities.

Deutsche Bank and Citigroup issued positive reports on European equities this week, pointing to an improving political climate and strong corporate earnings as factors bolstering the outlook for the year.

Last year, European companies raised $19.3 billion in IPOs, up 18% from 2023, but with fewer deals, according to LSEG data.

(1 dollar = 0.9648 euros)

(Reporting by Andres Gonzalez and Amy-Jo Crowley; editing by Anousha Sakoui; Spanish edition by Benjamin Mejias Valencia and Tomas Cobos)