Turkey plans IPO of stock exchange with Istanbul hub ambition

A worker descends escalators towards the trading floor inside the Borsa Istanbul, also known as the Istanbul stock exchange, in Istanbul. The Turkish government has authorised the sale of up to 42.75% of the Treasury’s stake in Borsa Istanbul through an IPO, according to a decision published in the country’s Official Gazette.

Bloomberg

Istanbul

Turkey’s government plans to sell a stake in the nation’s bourse, part-owned by Nasdaq OMX, through an initial public offering, as President Recep Tayyip Erdogan aims to turn Istanbul into a regional financial centre.

The government authorised the sale of up to 42.75% of the Treasury’s stake in Borsa Istanbul through an IPO, according to a decision published in the country’s Official Gazette. The Treasury’s class B shares could be sold by the end of next year, and the period can be extended by up to one year, according to the publication.

“Borsa Istanbul has put great efforts into restructuring, engaging with different international counterparties and getting ready for this almost for two years,” Tolga Koyuncu, chief executive officer of HSBC Securities in Istanbul, said by e-mail on Friday. “Bringing more stakeholders to the exchange is part of the government’s plan to promote and develop the exchange and turn Istanbul into a financial centre.”

The exchange incorporated the country’s equity, debt, derivatives, precious metal and gold markets under a single roof following a restructuring that turned the bourse into a joint stock company in 2012. Nasdaq OMX bought a 5% stake in Borsa Istanbul at the end of last year with an option to increase that by an additional 2%. Chairman Ibrahim Turhan said at a conference in July that the exchange would offer a 35% stake to the “right” partners.

Borsa Istanbul’s IPO price will be submitted to the government for approval, according to the Gazette. The exchange is authorised to pick its advisers, intermediary institutions and domestic and foreign investment banks.

A spokesman at Borsa Istanbul did not immediately respond to e-mailed questions.