Aydem Enerji Yatirimlari AS Plans IPOs

Aydem Enerji Yatirimlari AS, a prominent Turkish power generator, is preparing for the initial public offerings (IPOs) of two subsidiaries, GDZ Elektrik Dagitim AS and ADM Elektrik Dagitim AS.

The IPOs are scheduled for the first half of 2025 on the Istanbul Stock Exchange, with potential valuations of $2.2 billion for GDZ and $1.5 billion for ADM. The announcement was made by Serdar Marangoz, the newly appointed CEO of Aydem Enerji, who took on the role last month.

The company is in the process of selecting investment banks for the IPOs, with a decision expected soon. However, Marangoz did not reveal details regarding the stake percentages or targeted fundraising amounts. He expressed optimism about the timing, stating, "If all market conditions are favorable, we can have the IPO in the spring."

These public listings are viewed as a positive development for the revival of IPO activity in Turkey, particularly as the Borsa Istanbul 100 Index shows signs of recovery.

Investor preferences have shifted towards established stocks and interest-bearing deposits due to stricter monetary policies, which has lessened the appeal of new share offerings.

GDZ Dagitim and ADM Dagitim's public listing plans were initially considered in 2018 but were postponed after their parent company, Bereket Enerji, underwent a $4.7 billion loan restructuring the following year. Turkey's electricity market includes 21 privatized power grids, all operating under 30-year concession agreements established in the early 2010s.

The proceeds from the IPOs are intended for investments in grid infrastructure and debt repayment. GDZ Dagitim serves 3.9 million customers, holding an 8% share of Turkey's power distribution market, and has annual regulatory investment obligations of around $160 million.

ADM Dagitim, which serves 2.2 million customers, has annual investment commitments of approximately $120 million. Marangoz mentioned that ADM Dagitim's IPO may occur first, especially since GDZ Dagitim is considering an increase in a $400 million bond issuance that was announced in October.

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