Türkiye's third-biggest state-owned bank has begun an investor roadshow for a secondary share sale, its top executive said Monday, moving forward despite turmoil in the local investment fund market amid strong investor interest.
Halkbank General Manager Süleyman Özdil said he did not expect the crisis to have a negative impact on the offering, adding that the lender had met with nearly 60 investors in Abu Dhabi, Dubai, London and New York and seen strong interest.
"There is no change to the planned share offering. We will launch at the earliest opportunity, subject to market conditions," Özdil told an interview with Reuters. He did not comment on the possible size of the offering or exact dates.
Halkbank said in August that it had applied to Türkiye's Capital Markets Board (SPK) for a secondary public offering raising its nominal capital by TL 1.8 billion to TL 9 billion, two months after the dismissal of a U.S. case launched in 2019 alleging it had evaded sanctions on Iran.
Halkbank said after the dismissal that it expected its position in international markets to strengthen and its access to overseas funding to improve.
At current market prices, Halkbank's planned offering would raise around $1.7 billion, according to Reuters calculations.
No impact expected from fund turmoil
Asked whether investors were concerned about the fund crisis, he said investors believed the market would emerge healthier from the turmoil.
"They think the banking sector is healthy and valuations are cheap. They see the banking sector as the first place to look for investors seeking exposure to Türkiye," he said.
Türkiye's main share index entered a bear market and posted its worst monthly performance since 2008 in September after a sell-off that was triggered by the fund turmoil.
Regulators last month ordered the liquidation of 131 investment funds managed by seven asset managers following warnings by some that they could not meet redemption payments.
Authorities have widened their investigation into suspected market manipulation in stocks and fund markets.
Halkbank's IPO in 2012, raising around $2.5 billion, is still the biggest public offering in Türkiye.
The Türkiye Wealth Fund owns 91.5% of Halkbank, which has paid-in capital of TL 7.18 billion. The remaining 8.5% is publicly traded.