Halkbank plans $1.7 bn share sale as Turkiye market reels

Halkbank, Turkiye's third-largest state-owned bank, has commenced an investor roadshow for a secondary share sale, despite turmoil in the local investment fund market. General Manager Süleyman Özdil stated that the bank is moving forward with the offering, despite strong investor interest, and does not anticipate the crisis to have a negative impact on the sale.

The bank has met with nearly 60 investors in Abu Dhabi, Dubai, London, and New York, and expects to launch the offering at the earliest opportunity, subject to market conditions. Halkbank was initially planning to raise its nominal capital by TL 1.8 billion to TL 9 billion, but Özdil has not commented on the exact size of the offering or exact dates.

The bank applied for a secondary public offering in August to raise capital and strengthen its position in international markets. At current market prices, the planned offering would raise around $1.7 billion. Although investors are concerned about the fund crisis, they believe the banking sector is healthy and that valuations are cheap, making the sector an attractive option for investors looking to gain exposure to Turkiye.

In September, Turkiye's main share index entered a bear market, experiencing its worst monthly performance since 2008 due to the sell-off triggered by the fund turmoil. Regulators recently ordered the liquidation of 131 investment funds managed by seven asset managers following warnings that they could not meet redemption payments.