HSBC Said Chosen for IPO of Turkish Property Company Viaby and
The owners of Turkey’s Via real estate investment company hired HSBC Holdings Plc to manage an initial public offering this year, according to four people with knowledge of the plans.
Finansbank AS brokerage unit Finans Yatirim will help sell to domestic investors, said the people, who asked not to be identified because the matter is confidential. Citigroup Inc. was also hired to manage the international sale with HSBC, two of the people said.
Turkish companies are returning to share sales after the U.S. Federal Reserve began raising interest rates in December, making debt financing more expensive, according to Vahdettin Ertas, head of the country’s capital markets authority. Metals producer Cuhadaroglu Metal this month plans the first IPO for a Turkish company since June last year.
Via shares will be sold by Bayraktar Insaat AS, an Ankara-based builder equally owned by brothers Ali, Coskun and Mehmet Bayraktar, after the company combined some of its real estate businesses in to a new entity. The company formally known as Via Gayrimenkul Yatirim Ortakligi AS, or Via GYO, owns and operates shopping malls, marinas, offices and homes in Istanbul and its assets are were valued at 3.4 billion liras ($1.15 billion) according to its website.
About 90 percent of Via’s rent income is paid in dollars and euros, providing a hedge for the company against foreign currency fluctuations, according to IPO documents on its website. The company borrowed 250 million euros ($272 million) and 70 million liras from Finansbank AS and 300 million liras from Odeabank AS for land development.
Nevnihal Ciftci, a spokeswoman for Citigroup in Istanbul, declined to comment, as did HSBC Turkey. A Via GYO spokeswoman also declined to comment.