ISTANBUL, May 9 (Reuters) – Turkey’s leading agribusiness Yayla Agro Gida expects to raise 887.5 million lira ($59.25 million) in an IPO this week, followed by a new investment in Turkey and a buyout in Turkey United States, its chairman said.
The rice and legume producer is also seeking strategic partnerships globally, chairman Hasan Gumus told Reuters.
Yayla Agro is conducting an IPO for 15% of the company’s shares on May 11-13 with bookbuilding.
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The company’s paid-up capital will increase from 430 million lira to 472.6 million lira, and 71 million lira par-value shares will be offered to the public at a price of 12.5 lira per share.
According to Borsa Istanbul, this year’s IPO will be one of the largest in Turkey to date.
Last year, 52 companies listed on the stock exchange at the time of the IPOs offered bids totaling 21.6 billion liras, or about $2.4 billion in dollars.
“With the money we get from the IPO, we will fund our new investment in (central Turkey province) Nigde and keep the rest for our working capital needs. But our most important goal with the IPO is to make the company ready for strategic partnerships,” said Gumus.
“We want to become a global brand and are planning strategic partnerships. The IPO will be a big step towards that vision,” he added.
According to Nigde, the company will initially invest in the United States, Gumus said. “It can also be a greenfield investment, but a buyout seems more viable for our company.”
The new plant in Nigde, with an investment sum of 450 million lira, is expected to be operational by the first quarter of 2023, he said.
Yayla Agro currently has production facilities in Ankara and Mersin with a total capacity of about 1 million tons of rice and pulses and 35 million units of packaged meals per year.
The total revenue of Yayla Agro in 2021 was 4.5 billion lira, with 65% of revenue coming from international markets.
($1 = 14.9793 lire)
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Writing by Ceyda Caglayan Editing by Daren Butler, Kirsten Donovan
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