Istanbul-listed Dogan joining Turkish IPO spree with Galata Wind unit

Istanbul-listed Dogan joining Turkish IPO spree with Galata Wind unit
By Akin Nazli in Belgrade April 13, 2021

Turkey's Dogan Holding (DOHOL), owned by ex-media mogul Aydin Dogan, on April 8 received Capital Markets Board (SPK) approval to sell a 20% stake in electricity producing unit Galata Wind, Dogan said on April 9.

Dogan, among the Istanbul stock exchange speculators since the beginning of the 1980s when it was the dominant power in Turkish media, is set to sell 160mn existing shares at a fixed price of Turkish lira (TRY) 5.06. Galata Wind’s TRY535mn paid-in capital will remain unchanged.

Galata Wind has an overall installed capacity of 296MW, mainly derived from wind plants.

This year, IPOs on the Borsa Istanbul have become the leading market anomaly in Turkey. In recent years, global markets have not suffered from a lack of market anomalies.

In 2020, Istanbul-listed small cap stocks offered huge returns and IPOs emerged as the new "kitsch". In 2021 to date, small caps have lost momentum but IPOs have not.

All the held IPOs are for small cap companies and they enjoy huge demand. Generally, owners sell existing shares and take the money, rather than the companies via capital hikes.

Due to huge demand, each participant receives just a few shares. Following the IPO, share prices skyrocket when trading starts on the market.

On April 9, daily Sabah reported that 2.6mn people have bought shares in the Borsa Istanbul IPOs held in the past two weeks.

So far in 2021, a total of TRY1.6bn worth of shares have been sold in six IPOs while TRY39bn worth of bids were booked.

In 2020, TRY1.1bn worth of shares were sold by eight companies in IPOs.

The next up is Aydem Yenilenebilir Enerji, formerly Bereket Enerji, which from April 19-22 will collect bids.

On April 7, granite maker Qua Granite (QUAGR) smashed a record by attracting bids from a total of 846,353 accounts.

Bidders used to open several accounts at various brokerage houses in order to obtain more shares in IPOs. The SPK later banned this practice so bidders now open accounts for family members.

On April 8, Dunya reported that 18 companies have announced IPO plans or applied to the SPK in the last one-month period and that around 60 applications are pending at the SPK.

The record for getting locked at the price ceiling following the opening of market trading currently belongs to Turk Ilac (TRILC).

It was for 20 days that Turk Ilac shares were locked at the price ceiling after the share price rose to TRY73.60 from the IPO price of TRY10.

Naturally, the company became a rich source of jokes among the local market crowd. It may have found the elixir for immortality or an undisputed remedy for baldness after its IPO price was set.

At the Turk Ilac IPO, a “United Arab Emirates-based” participant, namely ME Performaa Management Consultancy, appeared. It bought a 7.2% stake. If you do not believe it, you can go to the Emirates to check.

Perhaps the main reason for the Turk Ilac share performance was a good choice of name, given that most real individual investors among the tonnes of “retail” accounts do not even know what the offered companies do.

Turk Ilac sounds like a “native and national” company. It has "Turk" in its name and Ilac means "medicine". The pandemic is raging. What could go wrong?

The company also made sure to mention in its IPO prospectus and in filings with the Borsa Istanbul following the listing that it was “holding some talks to produce a coronavirus (COVID-19) vaccine”.

Norway’s sovereign wealth fund, Norges Bank Investment Management, is also participating in the rash of Turkish IPOs.

In December, it bought a 7.7% stake in confectionery maker Kervan Gida (KRVGD) during its flotation. However, its stake was down to 1.87% by end-2020.

In March, Norges bought an 8.3% stake in the Naturelgaz (NTGAZ) IPO.


Major IPOs in Turkey
Date Sold Stake Price Buyer Seller
Apr-21 Seker REIT SPK application IPO owners
Apr-21 Ziraat REIT SPK application IPO owners
Apr-21 Kayseri Seker SPK application IPO owners
Apr-21 Manas Enerji SPK application IPO owners
Apr-21 Mercan Kimya SPK application IPO owners
Apr-21 Bogazici Beton SPK application IPO owners
Apr-21 PC Iletisim SPK application IPO owners
Apr-21 Oyak Invest SPK application IPO owners
Apr-21 Ulusal Faktoring SPK application IPO owners
Apr-21 Kalekim SPK application IPO owners
Apr-21 Unlu & Co SPK application IPO owners
Apr-21 Penta Teknoloji SPK application IPO owners
Apr-21 Biotrend Cevre SPK application IPO owners
Apr-21 Isbir Sentetik SPK application IPO owners
Apr-21 Ihlas Haber Ajansi SPK application IPO owners
Apr-21 Aydem Enerji (Bereket) 18.44% TRY1.1-1.3bn IPO Aydem(Bereket/Ceyhan Saldanli)
Apr-21 Suwen SPK application IPO owners
Apr-21 Galata Wind SPK approval IPO Dogan (DOHOL)
Apr-21 Selva Gida SPK application IPO Ittifak (ITTFH)
Apr-21 Qua Granite (QUAGR) 20% TRY395mn IPO -
Apr-21 Tarkim brokerage mandate IPO Gubretas (GUBRF)
Mar-21 Tureks (TUREX)     IPO Owners
Mar-21 Matriks (MTRKS) 38.05% TRY208mn IPO Owners
Mar-21 Naturelgaz (NTGAZ)     IPO Owners
Feb-21 Turk Ilac (TRILC) 30.43% TRY235mn IPO Owners
Jan-21 Isik Plastik 21.8% TRY182mn IPO @Borsa Istanbul
Feb-18 Medical Park (MPARK) 36.15% TRY1.38bn IPO Turkven etc.
Jun-17 Mavi Jean (MAVI) 55% TRY1.17bn IPO Turkven etc.