Turkey’s Top Bus Firm Plans IPO Despite Limits on Capacity

(Bloomberg) --

Turkish bus operator Metro Turizm plans to sell shares in Istanbul, as a record-long winning streak in the nation’s stock market outweighs any concerns it may have about the pandemic’s impact on public-transport use.

Metro Turizm Seyahat Organizasyon Ve Ticaret AS plans to apply for an initial public offering in about two months, Chief Executive Officer Ozgur Ayyildiz said by phone on Monday. The bus operator is set to sell new shares amounting to about 50% of its existing share capital. Ayyildiz refused to specify the amount of proceeds sought, saying it’s too early for that.

With revenue of about 1.25 billion liras in 2019 and more than 1,000 buses, Istanbul-based Metro is Turkey’s biggest intercity coach company. However, the hit it took from measures against the coronavirus pandemic was big, too. The number of passengers carried was negligible in April, while traffic in May it was only a quarter of the previous years, Ayyildiz said. Metro operates at 75% of its capacity due to restrictions that remain in place.

“We’ll be emerging from this crisis stronger,” the 31-year-old CEO said. “We’re ready to move to full capacity once authorities allow it.”

Turkey’s benchmark Borsa Istanbul 100 index has risen 30% since March 23, compared with a 27% gain in the MSCI Emerging Markets index. This period included a record 13-day streak of consecutive gains until early June, mostly enjoyed by domestic buyers. Foreign investors largely missed out on that rise, being net equity sellers for a 20th week in a row as of June 5, data from the Turkish central bank show.

Metro Turizm’s parent Metro Holding climbed 86% in the same period.

©2020 Bloomberg L.P.