TAV plans IPO to strengthen international expansion plans

Tina Milton

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Airport operator TAV plans to launch an IPO in 2007 to fund its international growth

Turkish airport operator TAV is expected to launch an IPO next year to strengthen capital as it plans to expand into international markets. Tepe-Akfen-Ventures (TAV), which is part of a partnership between Gebr Heinemann-controlled Unifree, wants a bigger share in the worldwide airport business.

Reports indicate the company has applied to the capital markets boards and will continue with the IPO after it is granted permission. Proceeds from the IPO will be added to the company’s capital of $137m to increase its fund base.

The company also plans a $750m to $900m bond issue with maturity of at least 12 years before the IPO.

TAV is targetting projects in Jordan, Tunisia, Saudi Arabia, India and at European airports. TAV operates domestic and international terminals at Istanbul Atatürk airport, Ankara Esenboga and Izmir Menderes airports.