Among discussions, Turk Telekom’s 15% IPO was completed just 1 day before the due time with 1,9 billion $ (2,42 billion YTL) . Local investors demanded 4,7 times (4,6 billion YTL) while international investors were demanding 4,3 times (6,3 billion YTL).
An over-allotment option (% 2,25) was not used but still it was the biggest IPO of Turkey and 5th biggest of the world according to Metin Kilci, the Privatization Administration (OIB) Chairman. Turk Telekom shares will start trading on the Istanbul Stock Exchange on May 15 under the name TTKOM.
The IPO had been criticised for the price level and stil being criticised, but “With the right timing, successful marketing campaign, and the pricing strategy which is maximizing the demand this IPO became the biggest IPO in our country with the revenue volume,” Metin Kilci said in his statement after the IPO was completed.
The initial price range was 3,9 – 4,7 YTL per share while 2007 budget were referring 7,4 YTL. Although overbooking the 4+ level, process was completed just under the top limit with 4,6 YTL. This price level is showing same index with the first privatization process in 2005, which was completed with 6,65 billion $ for 55%.
“In this unstable conditions of global economic crisis, this IPO can also be taken as a confidence sign for Turkey. 1,15 billion $ of IPO came from international investors (30% from England, 15% from UEA, 11% from USA, 10% from Switzerland, 9% from Lebanon, 6% from Saudi Arabia,6% from Singapoure and 13% from the others),” Kilci said.
Local investors spent 966 million YTL fort he stakes, while 7106 Turk Telekom and PTT staff spent 180 million $. Staff had an advantage of 7% discount. Kilci told that 94.000 shares were presented to the local investors while demand was 95.000.
Turk Telekom CEO Paul Doany said, “Oger Telekom will be holding the control shares of Turk Telekom till end of 2010”, when asked about the 35% stake purchase of Saudi Telecom.
Kaynak : 