* Share sales in first half 2023 raised 22.3 bln reais

* Annual share sales could climb to 50 bln reais - banker

* Nine of 13 H1 share offers outperform Ibovespa index

SAO PAULO, July 21 (Reuters) - Share offerings by Brazilian companies are set to pick up in the second half of this year, with bankers expecting a small revival in initial public offerings (IPOs), spurred by better economic conditions, fiscal reforms, and a stock market recovery.

Activity gained momentum in the second quarter with eight companies selling new shares between April and June after only one stock offering on Brazil's main stock exchange in the first quarter.

Brazilian companies such as car rental firm Localiza , homebuilder MRV and poultry processor BRF , were able to raise around 22.3 billion reais ($4.6 billion) over 13 share offerings so far this year.

In July alone, four more offerings were registered.

However, during the first of half of the year, Latin America's biggest economy had no IPOs, just like last year.

Roderick Greenlees, global head of investment banking at Itau BBA, expects 2023 to end with 25 to 35 so-called follow-on share sales and potential IPOs in Brazil, totaling around 40 billion to 50 billion reais.

"Companies that have projects or want leverage are not going to wait," said Greenlees, adding that many signs point to more offerings. "We have no reason to predict this window will close."

Contributing factors include improving economic indicators over the past few months, especially easing inflation, and advances in key economic legislation, such as new fiscal rules and consumption tax reform.

Further buoying the outlook is the prospect that Brazil's central bank will begin cutting interest rates in August.

The stock market's robust recovery should also help, analysts said. The benchmark Ibovespa index has rallied by about 22% from a March low.

Among the 13 firms that held share sales this year, 10 are trading above their offer's pricing. Nine have outperformed the Ibovespa index.

If follow-on offerings maintain momentum, an IPO comeback in the fourth quarter is possible, Greenlees said, predicting that potential deals are unlikely to be valued at less than 1.5 billion reais in a more selective marketplace.

"It won't be like the boom we had ... It will be operations that have liquidity," he said, referring to Brazil's IPO bonanza in 2021, when 46 companies listed.

"One lesson the market has learned is that smaller operations generate less liquidity, which is bad at a time of market downturn because you can't get out of that position very easily," said Greenlees.

Pedro Leite Costa, head of capital markets at Santander Brasil, estimates the IPO window will largely depend on the performance of the Brazilian stock exchange and the central bank's upcoming rate-setting meetings.

"If the stock market reacts well, I think we could see some IPOs," he said. "I think a handful is quite possible."

($1 = 4.8020 reais) (Reporting by Paula Arend Laier; Writing by Peter Frontini; Editing by David Alire Garcia; Editing by Sonali Paul)