UPDATE 1-Emlak GYO plans one of Turkey's biggest share sales
* SPO could raise 3.9 billion lira
* Share sale could be one of Turkey's biggest
* Emlak GYO stock popular with foreign investors (Adds details, share price, background)
By Ceyda Caglayan
ISTANBUL, Feb 8 (Reuters) - Turkey's largest housing developer Emlak Konut GYO is planning a 1.3 billion lira ($732 million) capital increase and a secondary public offering (SPO) to raise funds for new projects, its general manager said on Friday.
"We will raise our paid-in capital from 2.5 billion lira to 3.8 billion lira. We will hold a secondary public offering," General Manager Murat Kurum said in a telephone interview.
"We have started the process. We will determine the allocation of foreign and local investors in the meantime."
Emlak GYO, which builds residential properties including luxury high-rise apartments in cities across Turkey, is 75 percent owned by the Housing Development Administration of Turkey (TOKI) and 25 percent free float.
The SPO would take the free float to just over 50 percent.
Emlak GYO could raise 3.9 billion lira from the sale when calculated with closing prices on Thursday, which would rank it as one of Turkey's biggest share sales.
Turkey completed its largest ever share sale in November, raising 4.51 billion lira through the secondary public offering of state-run lender Halkbank.
Emlak GYO shares closed at 3.03 lira on Thursday, but fell 6.3 percent on Friday amid market talk of a possible SPO. The stock was Turkey's seventh most popular with foreign investors in January, according to stock market data.
Turkey's property sector has been flourishing, with a new wave of investors from the Middle East and Russia eyeing luxury developments, lured by a relaxation in property laws, relatively cheap prices and a thriving economy.
The country has seen a near tripling of per capita income over the past decade, fuelling a property rally supported by the introduction of mortgage financing, rapid urbanisation and demand for more luxurious, earthquake-proof homes.
(Writing by Seda Sezer; Editing by Nick Tattersall)