(Adds context, chief executive)
By Dasha Afanasieva and Ezgi Erkoyun
LONDON/ISTANBUL May 15 Turkish clothing
retailer Mavi Giyim plans to list on Istanbul's stock exchange,
the company said on Monday, in what will be a test for the
exchange 10 months after a coup attempt shook investor
confidence in the region.
Chief Executive Officer Cuneyt Yavuz said 82 percent of
Mavi's business comes from Turkey, which has a growing and young
population but in July the government resisted a dramatic coup
attempt and a resulting crackdown has left tens of thousands of
people sacked or arrested and unnerved markets.
The Istanbul Stock Exchange has seen a sharp decline in
listings: $14.3 million have been raised in IPOs so far this
year, compared with $119.9 million in the same period last year,
according to Thomson Reuters data.
Yavuz said there had been more alarming news out of Turkey
than expected, but added: "Our company has come out to be very
resilient in terms of the ups and downs of the Turkish market."
Last year Mavi, which was founded in Istanbul in 1991 and
has become one of Turkey's best known clothing brands abroad,
gained over a million new customers in Turkey and 30 percent of
those were under the age of 24, Yavuz said.
It achieved a consolidated revenue of 1.31 billion lira
($368.11 million) and an EBITDA - earnings before interest, tax,
depreciation and amoritisation - of 170.2 million lira in the
2016 financial year. Yavuz declined to disclose the target
valuation but said the company viewed Inditex and H&M
as comparable, as well as local players.
H&M is trading at enterprise value to EBITDA ratio of 8.6
for the next 12 months, while Inditex is at 17.6.
Mavi has nearly 400 shops and a presence in some 35
countries. Yavuz said Mavi is opening up bigger stores and
growing the existing stores while expanding its foothold in the
United States, Canada, Germany, Russia.
The offering will see 50 percent of the company sold by the
founding Akarlilar family and Turkven, a private equity fund
which invested in Mavi in 2008. They may also sell up to an
additional 15 percent, Mavi said.
Turkven also holds investments in shoe retailer Flo and fast
fashion chain Koton.
Mavi shares will be offered to international institutional
investors, and domestic retail and institutional investors, Mavi
Goldman Sachs is acting as global coordinator and, together
with Bank of America Corp's Merrill Lynch, as joint
international bookrunners. Turkey's Is Yatirim is acting as
domestic coordinator and bookrunner for the global offering.
($1 = 3.5587 liras)
(Editing by David Dolan and David Evans)