Turkish long steel producer Kardemir Celik Sanayi AŞ has launched an initial public offering (IPO) valued at TRY 4.48 bln (USD 94.9 mln), with the company aiming to strengthen working capital and improve utilization of its production facilities.
The IPO comprises 128 mln shares priced at TRY 35 per share, with bookbuilding scheduled for July 22-24. The company’s shares are expected to trade on Borsa Istanbul under the ticker KARCL upon completion of the offering.
The offering consists of 110 mln newly issued shares through a capital increase and 18 mln existing shares sold by current shareholders, resulting in a free float of approximately 15.4pct.
According to the approved prospectus, around 90pct of the IPO proceeds will be used to strengthen working capital, primarily to finance raw material purchases and operating capital requirements needed to increase capacity utilization following recent production and efficiency investments. The remaining proceeds will be allocated to general corporate purposes.
The company said the IPO is intended to support sustainable growth and enhance its corporate structure rather than finance debt repayment or major new investment projects.
Headquartered in Izmir, Kardemir Celik operates seven production facilities in Izmir and Denizli with a combined annual production capacity of approximately 2.5 mln tons. The company produces billet, wire rod, rebar, merchant bar and structural sections, including an annual billet production capacity of 1.2 mln tons, profile production capacity of 700,000 tons, and wire rod and rebar capacity of 600,000 tons.
1 USD / 47.2 TRY