Turkish tower company Global Tower has put its scheduled IPO on ice “until the markets become more reliable and stable”.
The Turkcell-owned company had aimed to list a 25% holding, which would have been the largest IPO in Turkey for three years, as well as the first in over half a year.
However, the firm noted that it was deterred by “the potential impacts of [the] upcoming United States presidential election and FED’s expected interest rate decision on the financial markets as well as the cyber-attacks”.
While the volatile environment abroad was cited by the firm, Turkey also faces security disruptions caused by the ongoing conflict in neighbouring Syria. In addition, Turkey’s government weathered an attempted coup earlier this year.
According to Blackfriars Asset Management fund manager Anastasia Levashova, Turkcell is not prepared to sell for below market value.
The company is also now less likely to buy out Telia’s stake in Fintur Holdings, which the two firms operate as a joint venture in Azerbaijan, Georgia, Kazakhstan and Moldova. The pair are now reportedly looking into a “joint divestiture” of the unit.