Halkbank IPO may be delayed or cancelled  

As the İMKB wrestles with yesterday’s sell-off, Halkbank is holding out until Friday for enough bids before deciding if it should delay or close its IPO.


  As markets shuttered Monday amid continuing political turmoil in Ankara, privatization officials signaled that the long-awaited partial share offering of the sprawling state-owned Halkbank will proceed as planned --- maybe.

  If the expected number of bids for the Halkbank' Initial Public Offering (IPO) is not received by May 4, then the officials will begin to consider either the cancellation or the delay of the Halkbank IPO.

  “The IPO process of Halkbank is continuing, just as planned,” said Metin Kilci, head of the Privatization board (ÖİB).


Extensive risk assessment

  Responding to questions related to whether a strategy change would be implemented depending on the fluctuations in the market, "We do not feel that a reevaluation is needed at this point,” said Kilci. He added: “There are more positive possibilities then negatives. The direction of the market is much stronger then what it was previously.”


Trading in İMKB set to begin

  Halkbank General Director Hüseyin Aydin and İş Investment's General Director were also present at the press conference concerning the IPO yesterday.

  The board decided to hold an IPO offering for about 25 percent of the company, including additional sales rights, said Kilci.

  The Halkbank IPO price has been set between YTL 6.40 to YTL 8.00 per share, he said. During May 1, 2 and 3 domestic Privatization board will continue to collect offers both from Turkish parties along with international ones. Kilci said that they plan for May 10 or 11 to be the day when Halkbank will officially go public and begin trading on the stock exchange.


Proceeding with caution

  Despite the approximately 4 percent drop of the Istanbul  Stock Exchange (İMKB) yesterday, Kilci said that the İMKB is at "the top of its game" and that it “showed its maturity."

  "It cannot always be for the better. When we called for Turkish Airline's IPO, the global market was going through a major crisis. Still, the IPO was successful,” he said.

  “Investor groups have been announced. It is not right to talk about the prices. We'll see what the risks are on Friday,” he said.

  Responding to a question related to the action the ÖİB would take if the desired tender participation were not achieved, Kilci said, “That decision will be made then. There are no negative expectations. I believe we will have positive outcome in May 4.”

  But of course ÖİB is not completely eliminating the possibility of negative scenarios. If the number of bids is ultimately insufficient, then the IPO may be postponed.

  Commenting on the main foci of the bank, Halkbank General Director Hüseyin Aydin said that the bank has been focusing on “SME banking, retail banking and growth.”


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