July 1 (SeeNews) - Turkey's D-MARKET Electronic Services & Trading, the holding company behind e-commerce platform Hepsiburada, on Thursday said its initial public offering (IPO) has been priced at $12 per share, raising gross proceeds of $680.9 million (573.5 million euro).
More than 56.7 million American Depositary Shares (ADSs) were placed in the transaction. The Istanbul-based firm offered roughly 41.7 million units, while an insider offered just above 15 million units, it said in a press release.
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The selling shareholder is TurkCommerce BV, which is owned by a foreign entity controlled by US asset manager Franklin Templeton. It has granted underwriters a 30-day option to purchase up to 8.51 million more ADSs to cover overallotments.
Each ADS represents one Class B ordinary share. D-MARKET started marketing its units in June at a price range of between $11 and $13 apiece
The Turkish firm will have its debut on the Nasdaq Global Select Market under the ticker symbol HEPS on July 1. At the IPO terms, it would command a market capitalisation of $3.43 billion, based on 286 million Class B shares outstanding.
D-MARKET is controlled by Turkey’s Dogan family, the owners of one of the country's largest conglomerates, Dogan Holdings. The e-commerce platform was founded by Hanzade Vasfiye Dogan Boyner, who is listed in the prospectus as a holder of 74.6% of the total voting power of the company. Upon completion, the founder will hold 71.1% of the voting power.
Established in 2000, Hepsiburada holds about 2% share of the highly fragmented Turkish retail market which remains dominated by offline retail players, according to research and analysis firm ADL. In 2020, it connected 33 million members, nine million active customers and a base of around 45,000 merchants.
The business generated revenue of more than 6.37 billion lira in 2020, up from 2.6 billion lira in 2019. It reported operating loss of 181 million lira last year, compared with 101.1 million lira profit a year earlier.
JP Morgan Securities, Morgan Stanley & Co and Goldman, Sachs & Co have been tapped as lead bookrunners for the IPO. The list of underwriters also includes BofA Securities and UBS Securities.
(1 euro = 10.3284 lira)