Erdemoğlu Holding plans to offer Merinos to the public by May 2025. The public offering will take place in the form of both partner sales and capital increase. Half of the shares will be destined for foreign investors, while the cash to be generated will be used in ongoing projects.

In times of high interest rates, it is a preferred orientation for companies to turn to alternative sources instead of banks concerning the reduction of their costs. At this point, public offerings stand out as a sort of funding for companies. Merinos Carpet is clearing the deck for a public offering with a similar approach. The company will offer 25 percent of its capital to the public, which is fully owned by Erdemoğlu Holding. Half of it will be realized through a capital increase and the other half through partner sales. Following the announcement of the year-end balance sheet, the public offering is planned to be carried out by May. The proceeds from the public offering will be used to finance the investments of both the holding and Merinos.

Works for Exports

According to the information provided by İbrahim Erdemoğlu, Chairman of the Board of Directors of Erdemoğlu Holding, Merinos' asset value is approximately 2 billion dollars and 90 percent of its annual turnover comes from exports. The total cost of the company's ongoing investments is around 275 million dollars. The cost of the company's MTR polyester chips investment is approximately 220 million dollars. The investment in question will have an annual production capacity of 350 thousand tons. It is estimated that the contribution of those investments to the turnover will be between 350-400 million dollars annually.

1 out of 3 Carpets in Europe

Merinos exports to 80 different countries, particularly the US and EU markets. The company has a striking market share, especially in the area rug segment. One in every four carpets sold in the US and one in every three in Europe belongs to the Merinos brand. Likewise, one in four carpets in Turkey is Merinos. The company's share of area rugs in the world is 7 percent. It is the largest carpet supplier of the US retail chain Walmart. It cannot sell many goods to the Chinese market. In addition, İbrahim Erdemoğlu, Chairman of the Board of Directors of Erdemoğlu Holding, said, “However, the Chinese cannot compete with Merinos in area rugs anymore. The reason for this is efficiency."

Merinos Carpet, which has also purchased the Dinarsu brand, has an annual production capacity of 40 million square meters. The company produces approximately 10 million carpets annually. İbrahim Erdemoğlu says that its growth rate is 18-20 percent annually on average in dollar terms.

It will apply to CMB after the Annual Balance Sheet

50 percent of Merinos' public offering will be oriented to foreign investors. It is planned that HSBC and JP Morgan will be the consortium leaders abroad and İŞ Investment domestically. Applications will be made to CMB after the year-end balance sheet is issued.

Source of News: Milliyet News