ISTANBUL (Reuters) - Turkish non-pipeline gas distributor Naturelgaz will go ahead with an initial public offering worth some 130 million lira ($16.4 million) this week despite market volatility, the chief executive Hasan Tahsin Turan said on Monday.
The company, a subsidiary of Global Investment Holdings (GIH), will use the IPO proceedings to pay debt, grow domestically and for investments abroad, Turan said, adding that there was investor interest in the listing.
According to the GIH website, Naturelgaz is Europe’s leading CNG (compressed natural gas) distributor in terms of station infrastructure and bulk sales volume.
Turan also said 90% of the share offered are allocated to local investors.
More than 27% of the company will be floated in the exchange valuing the company at 1 billion lira, according to the IPO prospectus, some 3.1 million shares will be offered if there will be additional demand.
The market value of the offering, including the stakeholder divestment, amount to 267 million lira. The company will receive around 127 million lira from shares sold via capital increase from the IPO.
According to its public offering prospectus, the listing will see 34.5 million lira nominal value shares on the Istanbul stock exchange if the over allotment option is fully exercised.
($1 = 7.9330 liras)
Reporting by Can Sezer and Ebru Tuncay; Editing by Daren Butler
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