Koc Holding AS, Turkey’s biggest group of companies, dropped the most in more than a month after three family members canceled a planned sale of 100 million shares.
Koc fell as much as 5.5 percent to 9.45 liras and closed 2.8 percent lower at 9.72 liras in Istanbul, the biggest decline since Feb. 7. About 13 million securities changed hands, more than three times the three-month daily average volume, according to data compiled by Bloomberg. The Istanbul Stock Exchange National 100 index slid 0.9 percent. Koc accounts for 3.5 percent of the gauge.
Price offers received during the accelerated bookbuilding managed by Deutsche Bank AG’s London unit failed to “rise to a satisfactory level,” triggering the cancellation of the private placement announced yesterday, according to a joint statement by Honorary Chairman Mustafa Rahmi Koc, Chairman Mustafa Vehbi Koc and Suna Kirac to the Istanbul bourse today.
“At first we viewed this as slightly negative for the stock -- one would expect a discount at a private placement,” Burak Isyar, an analyst at Burgan Securities in Istanbul, said in a phone interview today. “But now there are two negatives. First, we know that these shareholders want to sell. Second, that they were unable to do so.”
The three shareholders originally planned to sell a combined 3.94 percent stake, according to a filing with the Istanbul Stock Exchange after the market closed yesterday. The holding was worth about 1 billion liras ($554 million) at yesterday’s price of 10 liras a share. The securities were being offered to overseas institutional investors at between 9.50 liras and the market price, according to terms obtained by Bloomberg News.
The sale halt shows that “either foreign investors find the shares expensive, or that the family members did not like what was offered,” said Isyar, who has a hold recommendation for Koc with a 12-month price target of 11 liras.
Ford Otomotiv Sanayi AS, the Turkish carmaker co-owned by Koc and Ford Motor Co., retreated 3.6 percent to 23.1 liras at the close in Istanbul. Tofas Turk Otomobil Fabrikasi AS, the joint venture of Koc and Fiat SpA, fell 1.6 percent to 12 liras. Tupras Turkiye Petrol Rafinerileri AS, Turkey’s sole refiner and owned by Koc, dropped 1.4 percent to 52.75 liras.
Companies in Europe, the Middle East and Africa raised $17.2 billion in additional share offerings this year, including block sales to institutions, data compiled by Bloomberg show. That compares with $13.4 billion in the same period last year. UBS AG, which managed deals including an $849 million sale in TDC A/S in February, is the top adviser on sales in 2013.