Turkish discount retailer plans IPO in 2018

ISTANBUL - Reuters

Turkish discount retailer Şok is planning an initial public offering in 2018, two sources familiar with the matter told Reuters, the latest sign that Turkey’s IPO market may be coming back to life.

Şok, with more than 4,700 stores and 21,000 employees, is one of Turkey’s biggest discount retailers, selling groceries, fresh produce and household items.

It is 39 percent owned by Gözde Girişim, the investment arm of food giant Yıldız Holding, and half owned by a Netherlands-based investor consortium. A private equity fund run by Templeton Asset Management also holds 10 percent.

“If the markets are in a good condition, the Şok public offering is planned for 2018, and the work has begun,” said one of the sources, declining to be identified because the information is not yet public.
Other substantial IPOs are also expected in the future, the source said.

Yıldız declined to comment on the timing of the listing. 

“While a public offering is one of Şok’s future targets, a specific date has not yet been set,” it said.

It also declined to comment on Şok’s financial performance, although analysts estimate it achieved sales of 6 billion lira ($1.7 billion) in 2016 and could reach 8 billion liras this year.

It was not immediately clear how much of the company would be up for sale - or how large the listing would be. Gözde and its partners acquired Şok for $342 million in 2011 from rival retailer Migros.

Turkey’s IPO market has been on a slow recovery since 2015, when it recorded its worst year in more than a decade, with just $45 million in listings, according to Thomson Reuters data.

There are now signs of more activity. So far this year, Turkish IPOs have totaled $504 million, on track for their best annual showing since 2013.

Much of that was from jeans retailer Mavi Giyim which raised $334 million in June.