Four Turkish companies reportedly consider IPOs in London or Istanbul

Four Turkish companies reportedly consider IPOs in London or Istanbul
Baskent Gaz, Enerjisa, Memorial Health Group and TAB Gida in Turkey are all considering public offerings in London or Istanbul / Wikimedia Commons CC BY-SA-2.0
By bne IntelliNews July 19, 2017

Turkey’s Enerjisa, Memorial Health Group, Tab Gida and Baskent Gaz are considering public offerings in London or Istanbul, unnamed sources told Bloomberg on July 19.

Enerjisa, a 50:50 JV between Turkey’s Sabanci Holding and Germany's E.On, is the leading private power generator in Turkey. Sabanci and E.On have been considering IPO at Enerjisa for years. In March, Sabanci Holding struck an agreement with Germany's E.On to restructure Enerjisa and its subsidiaries.

Istanbul-based TAB Gida is the world’s largest Burger King master franchisee and Turkey’s largest fast food chain operator. In January, unnamed people familiar with the matter told Bloomberg that Tab Gida was considering an IPO in 2018.

Baskent Gaz is the sole gas distributor in Turkish capital Ankara. In June 2013, Turkish conglomerate Torunlar Group’s energy unit Torunlar Enerji signed the final agreement to acquire a 100% full stake in Ankara's natural gas grid Baskent Gaz for a consideration of $1.16bn. 

Memorial Health Group operates ten hospitals, four medical centres and a wellness center in Turkey. In October 2014, Argus Capital Partners and Qatar First Bank hired Bank of America Corp.’s Merrill Lynch unit was said to be considering whether to sell its combined 40% stake in Memorial Health Group.

So far this year, three major IPOs from Turkish companies were held. In May, ambitions to make the London Stock Exchange (LSE) initial public offering of Turkish conglomerate Global Yatirim Holding’s port operating unit Global Ports Holding (GPH) one of the biggest listings of the year sank when the float priced at the bottom end of the range.

Last month, DP Eurasia, master franchisee of Domino’s Pizza in Turkey, Russia, Azerbaijan and Georgia, shared the same destiny with Global Ports as its IPO in London was priced at the bottom end of the price range.

Also in June, Turkish jeans fashion retailer Mavi Giyim could not manage to fulfill its owners’ ambitions as its IPO in Istanbul was also priced at the bottom end of the price range.

Global Ports shares were up 0.07% d/d to 699 pence sterling as of 10:00 London time on July 19, significantly down from the IPO price of 740 pence. DP Eurasia shares were down 2.02% d/d to 205.75 pence, comparing favourably with the IPO price of 200 pence, while Mavi Giyim shares were down 0.05% to TRY42.1, down from IPO price of TRY43.

Borsa Istanbul’s benchmark BIST-100 was up 0.96% d/d to 106,730.

High-priced IPOs are typical for Turkish companies. Anastasia Levashova, a portfolio manager at Blackfriars Asset Management in London says: “Turkish IPOs were quite high-priced and so they didn’t generate a lot of post-IPO demand,” she told Bloomberg. The European summer holiday and investors’ lack of knowledge regarding newcomer Turkish firms may also have an impact on low demand, according to Levashova.

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