PE-backed Şok completes Istanbul IPO

The IPO comprised 218.5 million new shares, equivalent to 35.7% of the business, with gross proceeds amounting to TRY 2.3bn and a market cap of around TRY 6.43bn. This makes it one of the largest IPOs in Turkey in the last decade, alongside other noteworthy listings leading the way last year. 

The offer was oversubscribed multiple times at the issue price, with 85% of the shares offered to the public sold to foreign institutional investors and 15% allocated to domestic institutional and retail investors.

Bank of America Merrill Lynch, Credit Suisse, JP Morgan and Ünlü Menkul Değerler are acting as joint global coordinators. Citigroup is acting as global bookrunner and Garanti Yatırım Menkul Kıymetler is domestic bookrunner for the offering.

The company's shares are expected to start trading on the Borsa Istanbul on 18 May 2018.

Last year, regulation changes in Turkey prompted a handful of noteworthy IPOs, including Turkven-backed clothing company Mavi Jeans, valued at $500m, which listed on the Istanbul stock exchange in June 2017. A month later, the same GP also listed DP Eurasia, which owns and controls Domino's Pizza outlets in Russia, Turkey, Georgia and Azerbaijan, on the London Stock Exchange.

The flotations were the first for Turkish private-equity-backed companies since Morgan Stanley-backed Ege Seramik floated in January 2013, according to Unquote Data.

Previous funding
A private equity fund run by Templeton Asset Management has held 10% of the company since September 2013. According to Kap, the Turkish public disclosure platform, Yildiz Holding owns 39% of Şok Marketler.

Company
Founded in 1999 and headquartered in Istanbul, Şok is a discount supermarket retailer. The company is the investment arm of Turkish food conglomerate Yildiz, which owns Godiva chocolate and McVitie's biscuits.

Şok operates 5,100 stores, 24 warehouses, and employs a staff of 24,255. It reported revenues of TRY 9.5bn (€1.9bn) in 2017.

People
Şok Marketler – Uğur Demirel (CEO).

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