Garanti Broker Working on Two Turkish IPOs of Total $2 Billion, CEO Says

Garanti Securities, a Turkish broker and adviser, is working on two initial public offerings with a total value of $2 billion, Chief Executive Officer Metin Ar said.

Garanti Securities and its clients plan to sell the shares to investors in February, Ar said in an interview at his office in Istanbul yesterday. The smaller IPO is of an energy company, he said.

More Turkish companies are selling shares to the public after the economy expanded 6 percent in the fourth quarter, lagging only China among major emerging markets. The ISE National 100 share index rose 7.7 percent this year compared with a loss of 3.9 percent for the benchmark MSCI Emerging Markets Index.

Ar said he prefers Turkish banks Fortis Bank AS and Turkiye Is Bankasi AS, refiner Tupras Turkiye Petrol Rafinerileri AS and logistics company Reysas Tasimacilik & Lojistik Ticaret AS among stocks traded in Istanbul.

Garanti Securities expects the ISE to rise to 66,700 points by the end of the year, or 17 percent from yesterday’s close, Ar said. The index climbed 0.9 percent to 56,891.01 yesterday.

Ar said Garanti is planning to sign an accord with an “Italian boutique house” to cooperate in investment banking services.

Sixteen companies are interested in Ankara gas company Baskent Dogalgaz, Ar said in a separate televised interview today with Bloomberg HT news channel. Garanti was hired by the Ankara municipality to advise on the sale.

Garanti Securities is a unit of Turkiye Garanti Bankasi AS, Turkey’s second-biggest listed bank by market value of 30.5 billion liras ($19.6 billion.)

To contact the reporter on this story: Mark Bentley at mbentley3@bloomberg.net

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