Last week’ s IPO by TAV Airports Holding oversubscribed 18 times
Posted by meb at February 20th, 2007
The initial public offering of TAV resulted in an application demand worth $5 bln. TAV shares will be traded on the İMKB starting Friday
The largest initial public offering since last year’s market fluctuations in May and June has prompted demand by foreign investors 18 times larger than supply for shares of TAV Airports Holding, a pent-up demand corresponding to $5 billion.
Not only foreign investors but domestic investors also subscribed for TAV shares, a company statement said on Monday. Revenue of $320 million was recorded, 75 percent of which will be given to the main shareholder Tepe-Akfen to be used in opening four new universities in eastern Turkey and for privatization projects. The remaining 25 percent will be used for new investments by TAV.
Trading starts in İMKB on Friday:
Investors have applied for an estimated $5 billion worth of shares for the initial public offering (IPO) of TAV Airports Holding (TAV). The price per share has been set as YTL 10 and the shares are expected to start trading on the Istanbul Stock Exchange (İMKB) starting on Feb. 23, 2007.
Garanti Yatırım publicized the results of TAV’s IPO after subscriptions were collected between Feb. 15 and 16.
The statement read that TAV’s present capital with a nominal value of YTL 232.5 million was going to be raised to YTL 242.1 million. The additional shares with a nominal value of YTL 9.6 million plus shares belonging to existing shareholders (Tepe İnşaat, Akfen Holding and Akfen İnşaat Turizm) with a nominal value of YTL 29.06 million, adding up to a nominal value of YTL 38.75 million was offered to the public, the statement said. The right for additional sales was also used for Tepe İnşaat and Akfen Holding shares with a nominal value of YTL 5.8 million.
Foreign demand:
Foreign investors applied for $4.1 billion worth of TAV shares in its initial IPO while domestic demand was $928 million, totaling $5 billion.
Global Securities coordinated the IPO with partners Garanti Securities, Credit Suisse Securities (Europe) Ltd and HSBC Bank PLC.
Shares that correspond to 68 percent of the IPO were 18 times oversubscribed by 149 foreign corporate investors and 30 percent of the IPO was 10.3 times oversubscribed by 18,428 small individual domestic investors. After the additional rights for sale were used, the total value of the IPO increased from YTL 38.7 million to YTL 44.5 million, 69 percent of which, corresponding to a nominal value of shares of YTL 30.7 million, was sold to foreign corporate investors.
The remaining 30.13 percent of the IPO, corresponding to shares of a nominal value of YTL 13.4 million were sold to small domestic individual investors. Smaller percentages of 0.435 percent corresponding to a nominal value of YTL 193,750 was sold to individual domestic investors of high purchase power and another 0.435 percent corresponding to shares with a nominal value of YTL 193,750 was sold to domestic corporate investors.
Share price of YTL 10:
Each TAV share with a nominal value of YTL 1 had an IPO price range of between YTL 8.55 and YTL 10.30 during its offering on Feb. 15 and 16. With the price of YTL 10 for each IPO share, TAV’s market value reached $1.74 billion and a revenue of $320 million was recorded from the sale of shares of 18.4 percent of the company’s capital with a nominal value of YTL 44.56 million.
TAV operates Istanbul, Ankara, İzmir and Tbilisi airports as well as duty-free shops, catering services and an IT company. The ground handling company HAVAŞ is 60 percent owned by TAV and 40 percent by the Ciner Group. According to the balance sheets of the company as of the end of September 2006, the company’s turnover was YTL 520.8 million and its net loss was YTL 44.1 million. The company posted YTL 477.8 million in revenue at the end of 2005 and a net profit of YTL 45.8 million.
Profile of the IPO (Thousand YTL)
Revenue
Supply Demand Sale Share (%) (million $)
Total 38.750 606.593 44.562 100 320
Foreign 26.737 481.275 30.748 69 221
Domestic 11.625 119.680 13.426 30.3 97
Corporate 194 5.443 194 0.435 1
High-purchase
Power Individual 194 194 194 0.435 1
source: ISTANBUL- Referans
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