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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.
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