There have been 25 public offers on Borsa Istanbul this year. The total size of public offerings reached 11 billion 391 million lira. The 26th company to meet its new partners on the stock exchange this year will be Koroplast, a subsidiary of Korozo Ambalaj, which ranks 164th among 500 industry giants determined by the Istanbul Chamber of Industry. The company offers 38% of its shares to the public on Borsa Istanbul. The size of this public offering will be around 367 million lira. The company will collect applications on July 20-21-22 to make public.

“WE HAVE COMPLETED THE HOMEWORK AND DECIDED TO GO PUBLIC”

Bekir Türkoğlu, managing director of Koroplast, which is the guest of the special investor guide public offering program, said that they have completed the duties required by the company so far, and after completing these missions, they decided to go public. Highlighting that they closed the year with 46% revenue growth and net sales of 407 million lira in 2021, Türkoğlu said: “The first 6 months of 2022 are running parallel. enjoy,” he said.

THE DEBT WILL BE FULLY COVERED

Underlining that Koroplast works with an EBITDA margin between 20 and 25%, Türkoğlu said that the company’s debt to EBITDA ratio of 1.2 points has a very solid financial structure. Explaining that the debts will be repaid with the capital increase part of the income from the public offering, which will be carried out both in the form of joint sales and capital increase, Türkoğlu said: “The company will become debt free. We are also committed to distributing at least 25% of net distributable profit. This will be a dividend company. Behind the company. There is an investment with 40 years of expansion and growth potential. From now on, the investments to be made for the increase in capacity will be self-financed investments.”

Emphasizing that its traceable and corporate structures are open to public inspection, Türkoğlu said that Koroplast will strengthen its power with the public offering and said, “We are a company that does its job perfectly, from purchase to the consumption. There is a well-functioning machine in every outlet in Turkey “Why not invest in such a solid structure”, he said.

UNSATURATED MARKET

Stating that products made by Koroplast is a category that has yet to be saturated, Türkoğlu said, “Household penetration is at the highest level of 50% among our categories. There is a household penetration of 90% in OECD countries and Europe. In Turkey, 3 packets of garbage bags per year. “This rate is 8.9 packets in Germany. In the USA, 6.7 packets are purchased per kilogram per year. All this shows that there is serious growth potential in the market.” he said.

Recalling that they use a raw material derived from oil, Türkoğlu noted that the prices of these raw materials do not depend on oil prices, but they have reflected the cost increases that have occurred so far, although only insignificant, on their prices.

HOW WAS THE BRAND BORN?

Explaining that they started the institutionalization work under the structure of Korozo in 2007 and completed it in 2010, Türkoğlu said, “Although the company offered to the public is a company under a giant structure in the ISO 500, corporate structure, responsibility, transparency, traceability, procedures and standards are all in Koroplast.

Explaining the historical process that began with the start of Korozo Group’s packaging production in the early 1970s, Türkoğlu summarizes the company’s birth as follows: “The production that started for the needs of cafes, hotels and factories in the 1980s began to be made for the consumer. When they began to do so, the Koroplast brand emerged.”

GENERIC NAME OF THE CATEGORY

Expressing that the company, which became independent in 2017, continues within a business structure from production to sales, Türkoğlu said the following about the company and its production: “We have a very integrated facility. We have a raw material warehouse on one side and 16,000 tons of annual processing in a closed area of ​​25,000 square meters on the other. “This is a facility with a capacity of 19,000 bales, including 3,000 tons of packaging. We have a modern warehouse logistics base. We have also managed to optimize costs in a very integrated installation.”

Stating that the company has an adventure of more than 40 years and that he has witnessed it himself for 20 years, Türkoğlu said: “As a result of numerous studies, the Koroplast brand has become the generic name of this category. When garbage bags, refrigerator bags, parchment paper are mentioned, Koroplast is the first brand that comes to mind. We have over 100 products with innovations such as Turkey’s first ziplock bag, cooking bag. We have a market share of almost 50% in each category (storage, waste, kitchen and cleaning aids). You have to invest and be in innovation. We always consult consumers on a yearly basis and produce 1-2 products every year. “

38.5 PERCENT GO TO THE PUBLIC

Koroplast’s accounting will be carried out by a consortium of 38 brokerage houses under the management of Yapı Kredi Investment. With the increase of the paid-up capital from 150 million TL to 174 million 600 thousand TL, the shares with a nominal value of 24 million 600 thousand TL and the shares with a nominal value of 42 million 200 thousand TL belonging to the current partner of Korozo Ambalaj, the exact demand collected is greater than the amount offered for sale. The price of the public offering of shares of Korozo Ambalaj with a nominal value of 78 million 500,000 TL, including additional sales with a nominal value of 11 million 700,000 TL, has been determined at 4.68 TL .

It is expected that 25% of the shares of Koroplast to be offered to the public will be allocated to individual investors with high demands, 25% to domestic individual investors, 40% to domestic institutional investors and 10% to foreign institutional investors. After the IPO, the company’s free float is expected to be 38.26%, excluding additional sales.

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