Halkbank, Turkey´s number two state-owned bank began its initial public offering (IPO).
The government hopes to raise at least $1 billion from the sale, which could be the prelude to a strategic sale. Some 25 percent of Halkbank, Turkey´s fifth largest bank by market share and nationwide presence, is being sold in the IPO. Its privatization by a block sale earlier had attracted strong interest from abroad. However, the block sale plan was dropped in favor of the IPO approach. Foreign demand for Halkbank shares was 8.7 times higher than the offered amount, while domestic demand was around triple actual availability of shares. Total demand had been over USD 12.5 billion and this illustrated the high interest in the public offering. 70 percent of sales had been made to foreigners and the remaining 30 percent went to domestic investors. At USD 1.85 billion Halkbank’s IPO was the highest in Istanbul Stock Exchange (IMKB) history, also the highest public offering for a bank in Europe since 2004. Founded in 1938, Halkbank still focuses most of its operations on the small and medium business sector.

www.halkbank.com.tr