Türk Telekom group provides integrated telecommunication services from PSTN, GSM to wide band internet. Türk Telekom group companies have 17.3 millions of PSTN customers, 6 millions of ADSL customers and 12.6 million GSM customers as of Mach 31, 2009. With its modern network substructure, covering the whole country, the group companies offer a wide range of services to its personal and corporate customers. Turk Telekom, who is the owner of the 99,9% of shares of the companies TTNET, Argela, Innova, Sebit A.Ş. and AssisTT, is also the owner of 81% of the shares of Avea, which is one of the three GSM operators in Turkey. Turk Telekom also supports Albtelecom in Albania. The 55% of the shares of Türk Telekom belongs to Oger Telekomünikasyon A.Ş. and the 30% of the shares belongs to Undersecretariat of Treasure of Turkey. The remaining 15% of shares has been offered to public.

Transaction of the Year in Developing Markets

Being the leader of the market with its capability to perceive customer expectations, its knowledge, and its entrepreneurial and competitive identity, Turk Telekom had witnessed one of the most important developments in its history when Oger Telecom had purchased 55% of Turk Telekom shares after its privatization in 2005. The broadcasting corporation called “Acquisition Monthly” on which the international investors keeping close tabs had awarded the privatization regarding the block sale of Turk Telekom as the “transaction of the year in developing markets” with respect to mergers and acquisitions. This union has also brought the company international standards in service mentality.

Initial Public Offering of Türk Telekom

“Group D” bearer shares with a total nominal value of TL 525 million which belonged to the Turkish Treasury and which correspond to 15% of Türk Telekom’s paid-in capital were publicly offered following the authorization of the sale by the Capital Markets Board. Once the public offering had been completed, the shares have been listed on the national market of İstanbul Stock Exchange as of May 15, 2008.

The 2008 public offering of 15% shares of Türk Telekom was the seventh biggest public offering in the world and the biggest ever in Turkey. As a result of this offering, the Turkish Treasury secured a total of USD 1.9 billion (TL 2.4 billion) in revenue. The floor and cap prices set for the public offering were TL 3.90 and TL 4.70 respectively. The final issue price was TL 4.60, which corresponded to a company valuation of USD 15.5 billion and a share valuation of USD 12.7 billion. During the bookbuilding period (April 28-29-30, 2008), potential investors in Turkey submitted bids for 1.1 billion shares worth a total of TL 5.3 billion.

All of the bids submitted by PTT employees, Türk Telekom employees, and small investors were satisfied with shares. In the case of institutional investors and individual major investors, the satisfaction rates were 95% and 6% respectively. A total of 95,000 bids were received from domestic resident investors during the public offering and final sales were made to 94,000 of them. The Türk Telekom public offering represents one of the biggest offerings ever undertaken in Turkey in terms of the domestic allocation and sales.