Turkish discount grocer Şok raises $531 mln after cutting IPO price

ISTANBUL

Turkish discount grocer Şok Marketler on May 14 raised 2.3 billion liras ($531 million) in an initial public offering, after being forced to cut the price and extend the bookbuilding amid weakening demand for new listings.

Şok, whose largest shareholder is the investment arm of food giant Yıldız Holding, said it priced the offering at 10.5 lira a share, the top of its reduced range of 10-10.5 lira.

The market capitalization has thus reached to 6.4 billion liras.

According to a statement to the Public Disclosure Platform, the company noted that almost 85 percent of the publicly offered shares were sold to foreign corporate investors with the largest share, 15.6 percent by the U.K. based Genesis Investment Management, while the remainder was bought by domestic investors. Genesis was followed by the European Bank for Reconstruction and Development with 15.54 percent and the U.S.-based Neuberger&Berman with 9.15 percent.

The publicly offered shares lured $1 billion worth demand, according to the statement.

Some 35.71 percent of the company shares will be open to the public and the company shares will start trading on May 18.

Last week it cut the price by a quarter and said its top shareholder had placed an order for another $100 million shares, moves designed to boost demand.

The outlook for its IPO was clouded after two clothing retailers, Beymen Mağazacılık and DeFacto, canceled plans to list in recent weeks, citing low demand.

On May 13, Gözde Girişim said it had postponed the IPO of its Penta Teknoloji unit due to low demand.

The cancellations also coincide with a downturn in Turkish equity prices after shares reached a record high in January.