It will Roll Out the Red Carpet for Investors
EXPORTS ARE THE MAIN DRIVING FORCE
Last week, at the invitation of İbrahim Erdemoğlu, Chairman of the Board of Directors of Erdemoğlu, we visited Merinos and observed the production process firsthand. According to information provided by Mr. Erdemoğlu, the United States and Europe account for the largest share of exports. Forty percent of total exports go to the United States, 40 percent to Europe, and 10 percent to the Middle East and Asia. The company sources all the raw materials it uses in production itself. Employing 4,200 people and operating in a 600,000-square-meter facility, the company manufactures everything from polymer production to carpet under one roof. This minimizes supply chain issues and reduces costs.
A FIRST SINCE 2017
With over 100,000 color variations, Merinos offers 1.6 million different carpet styles. The company also has an annual yarn production capacity of 150,000 metric tons. It produces 80 million square meters of carpet annually, a volume equivalent to circling the globe twice. Merinos, the world’s largest manufacturer of machine-made carpets, is set to list on the Istanbul Stock Exchange in the near future. The company has completed its final preparations and conducted roadshows abroad. More than 50 percent of the shares to be offered in the initial public offering will be allocated to foreign institutional investors. This will mark a first in Turkish stock market history since 2017.
BRINGING FOREIGN CAPITAL TO TURKEY
Most recently, in Mavi Giyim’s (Mavi Jeans) initial public offering in 2017, 73.9 percent of the shares were sold to international institutional investors. Merinos’s initial public offering is poised to be the largest of recent times. İbrahim Erdemoğlu remarked, "We are talking about an international-scale initial public offering on a scale not seen since 2017. More importantly, it will be a success for Turkey’s capital markets. In our view, when you consider the size of this initial public offering, its institutional nature, and the foreign capital it will bring to Turkey, this is not just about Merinos’s initial public offering."
THE CASH STRENGTH BEHIND THE SASA ACQUISITION
Pointing to Merinos’s cash-generating capacity, İbrahim Erdemoğlu said, "The most concrete example of this is that the SASA acquisition was financed by the cash flow generated by Merinos. This is one of the key indicators of the sustainable financial capacity the group has built over many years. Today, everyone is looking at SASA, but the root of it all is Merinos. We started with carpets, today, we are transformed into an integrated industrial group spanning from production to raw materials, from chemicals to the global market."
$270 MILLION INVESTMENT COMPLETED
Mehmet Erdemoğlu, Chairman of the Board of Directors of Merinos, emphasized that Merinos is not merely a carpet-producing company, adding, "It produces the yarn needed to make carpets itself. It produces the dye needed to dye the yarn itself. It carries out the dyeing process itself. In fact, starting October 1st, it will also begin producing the polyester chips needed to make that yarn. We’ve made an investment of approximately $270 million in polyester chips here."
FOREIGN ORDERS UP 50 PERCENT
Noting that numerous uncertainties have emerged alongside regional conflicts, Mehmet Erdemoğlu said: "We’ve seen upward price surges in many raw materials. Today, prices are a bit more stable. When we compare our international order volume for Merinos from August of last year with our current international orders on a per-square-meter basis, we’re up by approximately 50 percent. We are hiring new workers. We are increasing our capacity."
IT WAS EASY TO EXPLAIN TO INVESTORS
Mehmet Erdemoğlu, noting that Sasa, which has been publicly traded since 1996, has expanded its base of corporate foreign investors since joining the group, said, “Sasa is a company recognized by international investors. For this reason, it is easier to explain Merinos. So far, we haven’t encountered a single investor who said, 'The region is unstable, and the facility is in Gaziantep, so let’s not invest'."
Source: Posta Newspaper
Last week, at the invitation of İbrahim Erdemoğlu, Chairman of the Board of Directors of Erdemoğlu, we visited Merinos and observed the production process firsthand. According to information provided by Mr. Erdemoğlu, the United States and Europe account for the largest share of exports. Forty percent of total exports go to the United States, 40 percent to Europe, and 10 percent to the Middle East and Asia. The company sources all the raw materials it uses in production itself. Employing 4,200 people and operating in a 600,000-square-meter facility, the company manufactures everything from polymer production to carpet under one roof. This minimizes supply chain issues and reduces costs.
A FIRST SINCE 2017
With over 100,000 color variations, Merinos offers 1.6 million different carpet styles. The company also has an annual yarn production capacity of 150,000 metric tons. It produces 80 million square meters of carpet annually, a volume equivalent to circling the globe twice. Merinos, the world’s largest manufacturer of machine-made carpets, is set to list on the Istanbul Stock Exchange in the near future. The company has completed its final preparations and conducted roadshows abroad. More than 50 percent of the shares to be offered in the initial public offering will be allocated to foreign institutional investors. This will mark a first in Turkish stock market history since 2017.
BRINGING FOREIGN CAPITAL TO TURKEY
Most recently, in Mavi Giyim’s (Mavi Jeans) initial public offering in 2017, 73.9 percent of the shares were sold to international institutional investors. Merinos’s initial public offering is poised to be the largest of recent times. İbrahim Erdemoğlu remarked, "We are talking about an international-scale initial public offering on a scale not seen since 2017. More importantly, it will be a success for Turkey’s capital markets. In our view, when you consider the size of this initial public offering, its institutional nature, and the foreign capital it will bring to Turkey, this is not just about Merinos’s initial public offering."
THE CASH STRENGTH BEHIND THE SASA ACQUISITION
Pointing to Merinos’s cash-generating capacity, İbrahim Erdemoğlu said, "The most concrete example of this is that the SASA acquisition was financed by the cash flow generated by Merinos. This is one of the key indicators of the sustainable financial capacity the group has built over many years. Today, everyone is looking at SASA, but the root of it all is Merinos. We started with carpets, today, we are transformed into an integrated industrial group spanning from production to raw materials, from chemicals to the global market."
$270 MILLION INVESTMENT COMPLETED
Mehmet Erdemoğlu, Chairman of the Board of Directors of Merinos, emphasized that Merinos is not merely a carpet-producing company, adding, "It produces the yarn needed to make carpets itself. It produces the dye needed to dye the yarn itself. It carries out the dyeing process itself. In fact, starting October 1st, it will also begin producing the polyester chips needed to make that yarn. We’ve made an investment of approximately $270 million in polyester chips here."
FOREIGN ORDERS UP 50 PERCENT
Noting that numerous uncertainties have emerged alongside regional conflicts, Mehmet Erdemoğlu said: "We’ve seen upward price surges in many raw materials. Today, prices are a bit more stable. When we compare our international order volume for Merinos from August of last year with our current international orders on a per-square-meter basis, we’re up by approximately 50 percent. We are hiring new workers. We are increasing our capacity."
IT WAS EASY TO EXPLAIN TO INVESTORS
Mehmet Erdemoğlu, noting that Sasa, which has been publicly traded since 1996, has expanded its base of corporate foreign investors since joining the group, said, “Sasa is a company recognized by international investors. For this reason, it is easier to explain Merinos. So far, we haven’t encountered a single investor who said, 'The region is unstable, and the facility is in Gaziantep, so let’s not invest'."
Source: Posta Newspaper