Founders of Turkey’s Mavi to remain as top shareholder after IPO: CEO

ISTANBUL - Reuters

The founding family of Turkish fashion retailer Mavi Giyim will remain as the top shareholder in the company following its initial public offering (IPO) this month, its chief executive said on June 6.

Founded in 1991, Mavi has become one of Turkey’s best known fashion brands. Its clothing, which includes the “relaxed boyfriend” and “Lucy super skinny” jeans, is sold in some 35 countries.

The Akarlılar family and private equity fund Turkven, which invested in Mavi in 2008, are together selling a 55 percent stake in the company at 43 to 51.6 lira a share, according to a filing with the Istanbul bourse late on June 5. That values Mavi at up to 2.56 billion lira ($723 million).

Following the sale, the Akarlılar family will remain as the top shareholder, while Turkven will retain a minority stake, Chief Executive Cuneyt Yavuz told a conference call on June 6.

The 1.4 billion lira sale, which includes a green-shoe option, has attracted attention of investors from Frankfurt, Stockholm, London and the United States, Yavuz said.

Following the IPO, the company will set up a new management board, which will be chaired by Ersin Akarlılar, Yavuz said.

The IPO is seen as a test of international demand for Turkish equities, after a coup attempt last year and a widespread crackdown that has seen more than 100,000 people sacked from their jobs and tens of thousands arrested.

The Istanbul Stock Exchange has seen a sharp decline in listings: $14.3 million have been raised in IPOs so far this year, compared with $119.9 million in the same period last year, according to Thomson Reuters data.

Bids will be collected on June 8-9 and shares are expected to begin trading on June 15.

Mavi achieved a consolidated revenue of 1.31 billion lira ($370.53 million) and an EBITDA - earnings before interest, tax, depreciation and amortization - of 170.2 million lira in the 2016 financial year.