Never mind the politics, feel the quality

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Never mind the politics, feel the quality

Defying acute political uncertainty and a high-risk macroeconomic environment, some of Turkey's largest companies are preparing to make international offerings. Metin Munir reports.

Out of the ruins


International investors have gained a taste for the Turkish market since Vestel, the leading colour television manufacturer, successfully closed a $40 million secondary offering in the international market. Other Turkish companies have taken their cue from Vestel's success.

At least three others are on the way to the market:

  • Sabanci Group, Turkey's second largest private conglomerate with many quoted companies, will make a primary offering of its holding company;

  • Yapi Kredi Bank (YKB), Turkey's largest private sector bank, which will make a secondary offering; and

  • Uzel Makina, Turkey's largest tractor manufacturer, which will be a newcomer to the stock market.

The prevailing political confusion has, however, forced some companies to shelve their plans for international offerings. They include Koç Holding, Turkey's biggest private group, which is working with Goldman Sachs, and Turkiye Ekonomi Bankasi (TEB).

CSFB and ING Barings will jointly lead the offering of about $150 million of stock in Yapi Kredi. The debut offerings for Uzel ($60 million) and Sabanci Holding ($200 million) are being prepared by Morgan Stanley. ING Barings is co-lead in both deals.


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