On or about July 1, 2021, Hepsiburada completed its IPO, selling approximately 62 million shares for $12.00 per share. On August 26, 2021, Hepsiburada announced its second quarter 2021 financial resultsthe quarter which had ended before the IPO closedand reported that revenue grew 5.2%, reflecting “the shift in GMV mix in favor of Marketplace.” The Company also reported that EBITDA was “negative TRY 188.6 million in Q2 2021 compared to positive TRY 71.1 million in Q2 2020 . . . due to lower gross contribution driven primarily by investments to fortify our position in electronics, investments to penetrate in high frequency categories as well as higher customer demand for low margin products.” On this news, the Company’s share price fell $3.05, or 25%, to close at $8.97 per share on August 26, 2021, on unusually heavy trading volume. By the commencement of this action, the Company’s shares were trading as low as $5.30, a nearly 56% decline from the $12.00 per share IPO price. The complaint in the action alleges that the Registration Statement was materially false and misleading and omitted to state: (1) that Hepsiburada suffered a sharp deceleration in operational and sales growth during second quarter 2021; (2) that, as a result, the Company initiated certain actions to fortify its competitive position, including investing in electronics and high frequency categories and discounting certain categories; (3) that, as a result of the foregoing, Hepsiburada’s revenue and GMV had declined during second quarter 2021; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis. As a result of the defendants’ acts and omissions, and the precipitous decline in the market value of the Company’s securities, the class has suffered significant losses and damages.
The alleged class includes : All persons and entities that purchased or otherwise acquired D-MARKET Elektronik Hizmetler ve Ticaret Anonim irketi a/k/a D-MARKET Electronic Services & Trading d/b/a/ Hepsiburada American Depositary Receipts pursuant and/or traceable to the registration statement and prospectus issued in connection with the Company’s July 2021 initial public offering.[IPO]
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