Is Investment, an arm of Turkey’s largest bank, expects to manage $750 million in initial share offerings next year, more than the entire amount raised in the country so far in 2013.
The unit, whose full name is Is Yatirim Menkul Degerler AS (ISMEN), has been mandated to manage four sales, including Turkey’s largest in three years, Chairman Ilhami Koc said in an Oct. 21 interview in Istanbul.
“One of these will account for about $500 million,” he said, declining to provide further details. “There’ll be more demand for sizeable offerings that appeal to corporate investors.”
Twelve companies have raised 1.2 billion liras ($623 million) through initial public offerings in Turkey this year compared with 16 in 2012, data compiled by Bloomberg show. Istanbul-based Is Investment, a unit of Turkiye Is Bankasi (ISCTR) AS, was the domestic coordinator in the sale of discount carrier Pegasus Hava Tasimaciligi AS (PGSUS), the country’s largest IPO since November 2010. Pegasus raised 649 million liras by selling a 34.5 percent stake in April.
Is Investment was the biggest brokerage in the country in the second quarter by transaction value, according to its website. The company’s assets under management rose 20 percent in the past 12 months to 14.9 billion liras.
Turkish companies are also raising more funds from the debt market, Koc said. Is Investment managed 23 corporate debt offerings in the first nine months, valued at 9.64 billion liras. That compares with 9.12 billion liras last year and 5.13 billion liras in 2011, according to company data.
“The bond market is hungry for new products, with local investors favoring fixed-income securities over more volatile equities,” Koc said. “Any alternative to government bonds is welcome in this market.”
Is Investment’s shares have dropped 8.5 percent in Istanbul this year to 1.39 liras, compared with a 0.9 percent gain in the benchmark index.
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