Pasifik Holding (PAHOL) has sold 4bn shares, amounting to a 20% stake, via a Borsa Istanbul initial public offering (IPO), Halk Yatirim Menkul Degerler, which acted as the intermediary in the offering, said on November 17.

The transaction was concluded for Turkish lira (TRY) 6bn ($142mn), or TRY 1.50 per share. The bookbuilding was held during November 12-14.

No participants in the IPO acquired more than 5% of the offered shares. According to local legislation, intermediaries are obliged to file the details of real or legal persons who acquire more than 5% of offered shares in a Borsa Istanbul IPO.

Via the IPO, PAHOL hiked its paid-in capital by TRY 2bn to TRY 20bn while each of Fatih Erdogan, Mehmet Erdogan and Abdulkerim Firat sold 667mn existing shares.

In the wake of the offering, the members of the trio equally hold the remaining 80% stake, including 3bn privileged Type A shares, in the company.

Fifth Pasifik IPO

Ankara-based Pasifik Holding, launched in 1986, regularly holds IPOs. In each IPO, the trio in question also raise proceeds by selling existing shares they possess.

In 2024, Pasifik Teknoloji (PATEK) sold a 20% stake for TRY 945mn ($61mn). In 2023, Pasifik Eurasia Lojistik (PASEU) sold a 20% stake for TRY 850mn ($36mn).

In 2021, Pasifik REIT (PSGYO) and Orcay (ORCAY) were listed on Borsa Istanbul.

​​"Matryoshka doll", or "babushka-doll", style IPOs are not uncommon on the Borsa Istanbul.

Guneysu folks

Fatih Erdogan’s wife Asuman Erdogan is an MP of the ruling Justice and Development Party (AKP).

In 2013, Recep Tayyip Erdogan, Turkey’s president and head of the AKP, attended the opening ceremony of PSGYO’s Next Level shopping mall and residential project in Ankara.

Both Fatih Erdogan and Recep Tayyip Erdogan are from the town of Guneysu in Rize province on Turkey’s eastern Black Sea coast.

Fatih Erdogan also features in the Istanbul municipality/Ekrem Imamoglu indictment, which was filed last week, as a victim.

Abdulkerim Firat, on behalf of PAHOL, donated kindergarten projects to the municipality in exchange for the greenlighting of real estate projects, Fatih Erdogan has told prosecutors.

120-130 companies in IPO queue

In September, Dof Robotik (DOFRB) sold a 29% stake in an Istanbul IPO for TRY 2bn ($49mn). It was registered as the first Istanbul IPO to have taken place since February.

In July, unnamed market experts told local business daily Ekonomim that around 80-90 companies were awaiting a go-ahead from the capital markets board SPK to hold an IPO.

No fresh listings are expected until the BIST-100 index achieves a new Turkish lira-based record and liquidity improves, the daily also noted.

In August, the index broke some records on a lira basis. However, September brought a fresh wave of political stress that hit the market.

The ongoing monetary tightening process has hurt Borsa Istanbul. Additionally, since the jailing of Istanbul mayor Ekrem Imamoglu in March, political risks have emerged as a major negative factor.

In October, Ecogreen Enerji Holding (ECOGR) sold a 20% stake in an IPO for TRY 1.14bn ($27mn).

On November 4, Omer Gonul, head of Turkey’s capital markets board SPK, said that 120-130 companies have filed applications to hold IPOs.

Government-run Vakif Faktoring raises 3bn lira

Also, during November 12-14, Vakif Faktoring (VAKFA), a unit of government-run Vakifbank (VAKBN), sold a 25% stake for TRY 3.2bn ($75mn).

VAKFA hiked its paid-in capital by TRY 50mn to TRY 900mn while VAKBN, VAKBN’s pension fund, Vakifleasing and Vakif Pazarlama sold the remaining 125mn existing shares.

In the wake of the IPO, VAKBN holds the remaining 75% stake in VAKFA, including 170mn privileged Type A shares.

There are 48 active factoring companies in Turkey.

VAKFA became the sixth factoring company listed on Borsa Istanbul. The BIST Leasing Factoring (XFINK) index now has nine components.

16 IPOs this year

In January-February, 12 companies raised a combined sum of TRY 29bn via Istanbul IPOs.

On its web page, the SPK lists 13 IPOs for the period. It counts the IPO of Armada Gida (ARMGD) since its shares were opened to trading in the new year. However, its IPO was held during December 25-27.

So far this year, a total of 16 companies have raised a total of TRY 41bn in Istanbul IPOs. (See the full list here).