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$715 Million Mavi Jeans IPO Could Be Turkey's Largest Since 2013

The deal promises to shake up a moribund market for Turkish IPOs, characterised by years of cancelled or postponed sales and short-lived listings.
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  • Bloomberg

ISTANBUL, Turkey — The owners of Turkish jeans-maker Mavi Jeans may raise as much as almost $400 million selling stock in a deal that promises to shake up a moribund market for local initial public offerings, characterised by years of cancelled or postponed sales and short-lived listings.

Turkven Private Equity, an Istanbul-based buyout firm, is offering its entire 55 percent stake in Mavi Giyim Sanayi ve Ticaret, with 27.3 million shares, including 3.6 million in an over-allotment option, on sale at 43 liras ($12) to 51.60 liras apiece, according to a term sheet obtained by Bloomberg. The offer range suggests an IPO of 1.17 billion liras to 1.4 billion liras, or $328 million to $394 million.

A successful IPO for Mavi, which claims Lady Gaga, Jessica Alba and Adriana Lima among celebrity customers, would be Turkey's biggest in dollar terms since 2013. The expected price range values the company at 2.14 billion liras to 2.56 billion liras, or as much as $715 million. That compares with a market capitalisation of $900 million for Abercrombie & Fitch Co. and $9 billion for Gap Inc.

Share sales have proved difficult for Turkish companies in recent years: Global Tower — a mobile-phone tower operator owned by Turkcell Iletisim Hizmetleri AS, and Borsa Istanbul were among those to either cancel or postpone their IPOs. Global Ports Holding scrapped a plan for a domestic listing in 2015, instead selling stock in London this month.

Turkven Private Equity and the Akarlilar family, owners of Mavi, applied to the Capital Markets Board on April 19 for approval of their IPO plans. The company is starting a international management roadshow Tuesday and the offering is expected to be completed on June 14.

By Tugce Ozsoy and Ercan Ersoy in Istanbul, with assistance from Francesca Cinelli; editors: Celeste Perri, John Viljoen, James Cone.

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