Subject category:
Finance, Accounting and Control
Published in:
2004
Length: 17 pages
Data source: Field research
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https://casecent.re/p/19439
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Abstract
This case delineates the initial public offering (IPO) of the largest telecommunications company in Turkey. Founded by a large business group in Turkey, Turkcell had gained a large share of the market for mobile telecommunications in Turkey and was rapidly expanding into neighbouring countries. In the year 2000, at a time when companies in the information technology and telecommunications industry were valued at historical peaks, Turkcell decided to go ahead with a simultaneous listing of its shares on the Istanbul and New York Stock Exchanges. Although the IPO initially seemed like a success from a financial point of view, it later disappointed its investors. The case proposes some possible reasons regarding the poor performance of the IPO. The first section introduces the reader to the telecom industry in the world. The second section goes on to describe the mobile telecom industry in Turkey, where Turkcell mainly operates. The third section is devoted to outlining Turkcell''s operations, followed by a section on the IPO process of the company. The final section discusses why the IPO did not turn out to benefit its new investors in line with expectations. The teaching note was written by Fulya Sunar.
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Abstract
This case delineates the initial public offering (IPO) of the largest telecommunications company in Turkey. Founded by a large business group in Turkey, Turkcell had gained a large share of the market for mobile telecommunications in Turkey and was rapidly expanding into neighbouring countries. In the year 2000, at a time when companies in the information technology and telecommunications industry were valued at historical peaks, Turkcell decided to go ahead with a simultaneous listing of its shares on the Istanbul and New York Stock Exchanges. Although the IPO initially seemed like a success from a financial point of view, it later disappointed its investors. The case proposes some possible reasons regarding the poor performance of the IPO. The first section introduces the reader to the telecom industry in the world. The second section goes on to describe the mobile telecom industry in Turkey, where Turkcell mainly operates. The third section is devoted to outlining Turkcell''s operations, followed by a section on the IPO process of the company. The final section discusses why the IPO did not turn out to benefit its new investors in line with expectations. The teaching note was written by Fulya Sunar.
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