In 2008, Türk Telekom concluded a successful initial public offering of 15% of its shares owned by the Treasury.
"Group D" bearer shares with a total nominal value of TL 525 million which belonged to the Turkish Treasury and which correspond to 15% of Türk Telekom’s paid-in capital were publicly offered following the authorization of the sale by the Capital Markets Board. Once the public offering had been completed, the shares have been listed on the national market of İstanbul Borsa Istanbul as of May 15, 2008.
The 2008 public offering of 15% shares of Türk Telekom was the seventh biggest public offering in the world and the biggest ever in Turkey. As a result of this offering, the Turkish Treasury secured a total of USD 1.9 billion (TL 2.4 billion) in revenue. The floor and cap prices set for the public offering were TL 3.90 and TL 4.70 respectively. The final issue price was TL 4.60, which corresponded to a company valuation of USD 15.5 billion and a share valuation of USD 12.7 billion. During the book building period (April 28-29-30, 2008), potential investors in Turkey submitted bids for 1.1 billion shares worth a total of TL 5.3 billion.
During the public offering, “on the spot” publicity meetings were conducted in six countries (Germany, USA, Sweden, UAE, UK, and Saudi Arabia). Of the listed shares, 30% were allocated for Türk Telekom and PTT employees and for small investors, 3% for major individual investors, 2% for institutional investors, and 65% for foreign non-resident investors. On the basis of the finalized bids that were received, it was decided to revise the allocation for domestic investors to 40% and the share for foreign non-resident institutional investors to 60%. During the final bidding period, which took place in May 7-8-9, domestic investors submitted bids for 995 million lots worth a total of TL 4.6 billion while 1.4 billion lots worth a total of TL 6.3 billion were bid on by foreign investors. These numbers correspond to 4.7 and 4.3 times the respective allocations made to those two groups. The total public offering was valued at USD 1.9 billion, USD 1.15 billion of which was based on bids by foreign institutional investors. Of the total international sales of shares, 30% went to the UK, 15% to the UAE, 11% to the USA, 10% to Sweden, 9% to Lebanon, and 6% to Singapore while the remaining 19% were bought by investors in other countries. Total proceeds from the sale of the 40% allocated to domestic investors amounted to TL 966 million (USD 767 million). Of these shares, 1.75% was bought by PTT employees, 5.6% by Türk Telekom employees, 15.1% by small investors, 9.7% by major individual investors, and 6.8% by institutional investors.
All of the bids submitted by PTT employees, Türk Telekom employees, and small investors were satisfied with shares. In the case of institutional investors and individual major investors, the satisfaction rates were 95% and 6% respectively. A total of 95,000 bids were received from domestic resident investors during the public offering and final sales were made to 94,000 of them. The Türk Telekom public offering represents one of the biggest offerings ever undertaken in Turkey in terms of the domestic allocation and sales.