Business | Investment

Channel Sponsor

Turk Telekom IPO values firm at $12.9b

A price range of 3.90 to 4.70 lira has been set for an initial public offering (IPO) of Turk Telekom, valuing the whole company at up to 16.5 billion lira ($12.9 billion), the Radikal newspaper reported on Sunday.

  • Reuters
  • Published: 00:05 April 28, 2008
  • Gulf News

Istanbul: A price range of 3.90 to 4.70 lira has been set for an initial public offering (IPO) of Turk Telekom, valuing the whole company at up to 16.5 billion lira ($12.9 billion), the Radikal newspaper reported on Sunday.

No one was available to comment at the Privatisation Administration, which is coordinating the sale of the partly state-owned fixed line operator.

Turk Telekom, a former monopoly, is listing a 15 per cent stake, or 17.25 per cent, including an over-allotment option. The government is pressing ahead with the deal despite a 22 per cent slide on Istanbul's main stock index this year.

A 16.5 billion lira market value, or $12.9 billion at current conversion rates, compares with the $11.9 billion at which the company was valued in 2005 by the first deal in its privatisation process, when Oger Telecom paid $6.55 billion for a 55 per cent stake.

At the top of the range, the sale of a 17.25 cent stake would raise 2.8 billion lira, well below revenues of 3.9 billion lira which the government had forecast in this year's budget.

Radikal said Turk Telekom shares were expected to start trading on May 15. Book building is scheduled to start today.

Deutsche Bank and Garanti Securities, part of Garanti Bank, are advising on the offering.

  • Rate this article
  • Average reader rating (0 votes) 0 Stars
Tools

Emailing an article to friend is a simple way to share a news item. Your friend will receive an email with your name and email address as well any personal message you choose to send.

The information you provide on this page will not be used to send unsolicited emails.

This service is not intended to encourage spam, and action may be taken against individuals who maliciously enter personal details of another individual.

Share this article

More from Investment

  1. Investment trusts resilient in providing higher yields

  2. Pessimistic investors 'put too much money into bonds'

  3. A steady hand at the tiller wins out

  4. GCC stocks no longer out for the count

All articles in Investment

More from Business

Gulf News
Popular in Business
Airlines in the region
Budget travel

Airlines in the region

Take a pictorial look at some of the budget airlines in GCC

Business Editor's choice