Aydem Group eyes $3.7 billion value in 2025 IPOs for energy units

Aydem Enerji Yatirimlari AS, a leading Turkish power generator and distributor, is gearing up for the initial public offerings (IPOs) of two of its subsidiaries, GDZ Elektrik Dagitim AS and ADM Elektrik Dagitim AS.

The IPOs are slated for the first half of 2025 on the Istanbul stock exchange, potentially valuing the grid operators at $2.2 billion and $1.5 billion, respectively. This announcement was made by Serdar Marangoz, the Chief Executive Officer of Aydem Enerji, to Bloomberg. He assumed the CEO position last month.

The company is in the process of selecting investment banks to manage the IPOs, with a decision expected shortly.

However, Marangoz did not disclose details regarding the percentage of stakes to be sold or the targeted fundraising amount. He expressed optimism about the timing of the IPOs, stating, "If all market conditions are favorable, we can have the IPO in the spring."

The anticipated public listings are seen as a positive sign for the resurgence of IPO activities in Turkey, especially as the Borsa Istanbul 100 Index shows signs of recovery from its previous downturn.

The Turkish market has witnessed a shift in investor preference towards established stocks and interest-bearing bank deposits due to tighter monetary policy, which has somewhat dimmed the allure of new share offerings.

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

The proceeds from the IPOs are earmarked for investment in grid infrastructure and repayment of debts. GDZ Dagitim, which provides electricity to 3.9 million customers and holds an 8% share of Turkey's power distribution market, has regulatory investment obligations of approximately $160 million annually.

ADM Dagitim serves 2.2 million customers and has annual investment commitments of around $120 million. Marangoz indicated that ADM Dagitim's IPO might proceed first, given that GDZ Dagitim is also considering an increase in a $400 million bond issuance from October.

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Source: Investing.com