* IPO to include sale of new and existing shares
* Funds to boost capital, aid expansion
* Plans to float before year-end (Adds details, background)
WARSAW, Nov 8 (Reuters) - Polish lender Alior Bank plans to raise 700 million zlotys ($215.5 million) in an initial public offering (IPO) this year that will include the sale of existing shares, it said on Thursday.
The bank, which is owned by the Zaleski family through their holding company Carlo Tassara, did not state the value of existing shares it planned to sell.
Despite being launched in 2008 at the start of the global financial crisis, A lior has built the third-largest distribution network in Poland and a well-known brand thanks to its quirky advertising featuring its bankers in bowler hats.
Alior had considered a sale to another lender or private equity fund, but instead opted for a stock market listing, which will be one of the Warsaw bourse's largest this year. It expects free float to exceed 50 percent.
The bank said it would use the funds raised to strengthen its capital position and continue expanding.
In the first three quarters of the year, the lender posted a 57 percent rise in net profit to 223 million zlotys.
Barclays Bank, J.P. Morgan Securities and Morgan Stanley & Co. International are the listing's joint global coordinators and bookrunners. IPOPEMA Securities S.A. is acting as joint global coordinator, bookrunner and offering agent, while Erste Group Bank AG and Renaissance Capital Limited are acting as co-lead managers. ($1 = 3.2489 Polish zlotys) (Reporting by Chris Borowski; Editing by Erica Billingham)