D-MARKET Electronic Services & Trading (HEPS) Misstated its Business and Financial Prospects
On July 1, 2021, D-MARKET conducted its initial public offering ("IPO"), selling 62.251 million ADRs at $12 per ADR for more than $783 million in gross proceeds. However, the Registration Statement filed in support of the IPO failed to disclose that D-MARKET had suffered deeply disappointing financial results in 2021 – before the IPO – and instead represented that the Company was experiencing tremendous revenue and sales growth at the time of the IPO.
On August 26, 2021, D-MARKET announced its 2Q21 financials results, including a just 5% year-over-year growth in 2Q21, over 90% below the most recent growth highlighted in the Registration Statement. The Company also noted: "[a]s the second half of the year began, the Turkish e-commerce market has encountered several challenges ... includ[ing] the nationwide extension of the bank holiday period during the celebration of Eid al-Adha in July, and the lift-off of lock-down measures as of July 1st, both of which adversely impacted consumer behavior in online shopping."
The stock currently trades at just $5.50, a more than 50% decline from the price at which D-MARKET sold its ADRs to investors.
D-MARKET Electronic Services & Trading (HEPS) shareholders have legal options. If you own shares of D-MARKET Electronic Services & Trading contact us to learn more about your rights.
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