Bank Groups Said to Vie for $2 Billion Borsa Istanbul IPO

Two large groups of banks are competing to work on the initial public offering of Turkey’s stock exchange, which may value the bourse at as much as $2 billion, people with knowledge of the matter said.

The Turkish government may announce the winning group in the next couple of weeks, and the IPO of Borsa Istanbul AS could take place before the end of this year, the people said, asking not to be named as the details aren’t public. Turkey authorized the sale of as much as 42.75 percent of the exchange last November.

One group in the final stage of bidding for the mandate includes Citigroup Inc., Deutsche Bank AG, JPMorgan Chase & Co., UBS AG and at least two Turkish investment banks, four of the people said. The other includes Bank of America Corp., Goldman Sachs Group Inc., Morgan Stanley and Societe Generale SA, who are also working with at least two local banks, they said.

In total six bids have been made for the mandate, including other groups and some institutions pitching independently to manage the sale, they said.

Verbal presentations by bidders were made between April 6 and April 14, Borsa Istanbul said in an e-mailed response to Bloomberg’s questions. Bids are being assessed and a decision will be made as soon as possible, according to the e-mail.

Turkish companies including dairy producer Ak Gida Sanayi & Ticaret AS and ports operator Global Liman Isletmeleri AS are planning to sell shares next month, seeking to take advantage of strong investor appetite for European stocks, after IPO volumes in the region outpaced those in Asia and the U.S. combined last quarter.

Representatives for Citigroup, Goldman Sachs, Bank of America, Deutsche Bank, JPMorgan, Morgan Stanley, Societe Generale and UBS declined to comment.

The European Bank for Reconstruction & Development plans to acquire more than five percent of Borsa Istanbul ahead of the bourse’s planned IPO, people with knowledge of the matter said Feb. 11. The deal could be announced after Borsa Istanbul completes the sale of minority stakes to buyout firms Silver Lake and Warburg Pincus, they said.

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