Bank Hapoalim B.M. (TASE:POLI) is leaning towards an Initial Public Offering for Isracard Ltd., rather than a sale or distributing its stake to shareholders, that could value the unit at about $1 billion, according to people familiar with the matter. Bank Hapoalim has been working with Citigroup Inc. (NYSE:C) on options for Isracard Ltd. and could list Isracard's shares on the local exchange shortly after reporting annual earnings in March, the people said, asking not to be identified because the plans are private. Hapoalim has almost finished working on a draft prospectus for the offering, but is cautious about when and if to proceed with the IPO because of recent market volatility, the people said.

Sharona Mazalian Levi, a spokeswoman for Hapoalim, declined to comment.