Mavi Launches IPO in Turkey's Largest Deal since 2013
Esin Attorney Partnership, a member firm of Baker McKenzie advised Turkven Private Equity, the Akarlılar Family and Mavi Giyim Sanayi ve Ticaret A.Ş. (Mavi), a leading Turkish lifestyle fashion business, on Mavi’s IPO.
The offering consists of an international offering of 16,624,300 shares by Blue International Holding B.V. outside the United States and Turkey to institutional investors in offshore transactions; in the United States only to qualified institutional buyers; and a public offering of 7,124,700 shares to retail and institutional investors in Turkey in offshore transactions.
3,562,350 additional shares were sold by the selling shareholder to cover over-allotments. Based on the offer price, Mavi’s total market capitalization at the commencement of trading was approximately TRY 2.14 billion.
The shares began trading on the Borsa İstanbul on June 15, 2017 under the symbol “MAVI.”
With a market capitalization of TRY 2,135,300,000 (TRY 43 per share) and an offering of 27,311,350 shares, Mavi’s IPO is the largest IPO in Turkey since 2013.
The underwriters were Bank of America Merrill Lynch, Goldman Sachs and İş Yatırım.
Esin Attorney Partnership’s Head of Capital Markets, Muhsin Keskin, stated,
We are very happy and proud to have completed the legal framework for this momentous deal.
"This deal showcases Turkey’s strong economic programs and the rising interest in Turkish capital markets. It promises to shake up a moribund market for Turkish IPOs, characterized by years of cancelled or postponed sales. This IPO is very important for several reasons. First of all, it is 2017’s first successful public offering and the largest Turkish IPO in dollar terms since 2013. It is also the very first exit of a private equity investor through an IPO in Turkey, showing to international private equity firms interested in Turkish assets that this exit strategy, frequently used in Europe, is also available to them in Turkey. The public float of 55% is among the largest in the Turkish market and sets a very good example for best corporate governance practices in the Turkish capital markets.”
This was a multi-jurisdictional deal led by partners Muhsin Keskin (head of capital markets, Istanbul), Eren Kurşun (head of M&A and PE, Istanbul), Erdal Ekinci (head of tax, Istanbul),Birturk Aydın(head of compliance, Istanbul), Mark Devlin (Frankfurt), Nikolaus Reinhuber (Frankfurt), Marcel Janssen (Amsterdam), Michael Fieweger (Chicago), Sergei Voitishkin (Moscow), James Thompson (London) and Nick O'Donnell (London). They were supported by of-counsel Ross McDonald (New York), associates Caner Elmas (Istanbul), Güneş Helvacı (Istanbul), Berk Cin (Istanbul), Sertaç Kökenek (Istanbul), Gökçe Serez(Istanbul),Sait Baha Erol (Istanbul), Erdi Yıldırım (Istanbul), Sena Uralçın (Istanbul), Sena Çalın (Istanbul), Valesca Molinari (Frankfurt), Kim Stouffer (Toronto), Rochelle McAllister (Chicago), Sergey Kapustin (Moscow), Gerard Koster (Amsterdam) and Tom Quincey (London).