Equity analysts this week cited weakening investor confidence for the failed IPOs ofTurkish satellite-television operator Digitiirk and Romanian cable and satellite company RCS&RDS. But they cautioned against invoking the credit-market crisis as a blanket explanation for why the companies pulled their attempts at going public. Digitiirk and RCS&RDS were scheduled to float on the London Stock Exchange last week, but withdrew their IPOs widi-in hours of each other, both blaming "poor market conditions". Sinan Goksen, head of research at Istanbul-based investment bank Ekspres Invest, said that although market turmoil had "played its part" in Digitiirk's failed IPO, there were also "some more specific issues" concerning the company's business model. "Digitiirk's success hinges on its broadcast rights to the Turkish football premier league," he said. "This contract will expire in 2010, and there is no guarantee that the Turkish football federation will renew it with Digitiirk." The company had failed to achieve its target share price of between US$9 (￡4.35) to US$11 because "investors are pricing the risk concerning this rights issue and they are demanding a discount", said Goksen. He added that investors had been prepared to pay between US$6 and US$7 per Digitiirk share. Another Turkish investment banker agreed that uncertainty surrounding Digitiirk's football rights had "raised questions about future revenues" among investors, but remained confident that the company would float once investor confidence had been restored. "They are still a great company, and I expect them to hold their IPO eventually," he said.
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