KAPEKS Chemistry Launches 2.36 Billion TL IPO on August 12

KAPEKS Chemistry is kicking off its demand collection phase on August 12, targeting an IPO worth approximately 2,359,000,000 TL, aiming to inject fresh capital into Turkey's equity markets.

Scale and Pricing Strategy of the Offering

The company will issue shares with a total nominal value of 25.1 million TL through a pure capital increase. The expected float ratio stands at %20.06.

■Nominal Value: 25.1 million TL

■Total IPO Size: 2,359,000,000 TL

■Float Ratio: %20.06

Consortia Structure and Allocation Blueprint

The IPO is being managed by a consortium led by Turkey Industrial Development Bank (TSKB) and Ziraat Investment, with Yatırım Finansman Securities as co‑lead. Allocation will be as follows:

■%50 to domestic retail investors

■%25 to domestic institutional investors

■%20 to foreign institutional investors

■%5 to high‑net‑worth investors

Investment Roadmap: Production Capacity and Technology

KAPEKS intends to allocate %40‑50 of the proceeds to new production facilities, investment opportunities, and automation of existing lines, while %50‑60 will fund raw‑material procurement and working capital. A second shock‑tube line, adding 38,800 km of capacity, is slated for commissioning by the end of 2026.

■Additional Line Capacity: 38,800 km

■Current Line Capacity: 28,512 km

■Second Line Start‑up: 2026

Global Footprint and Export Outlook

The firm operates in Liberia and Uzbekistan, serving more than 15 countries across three continents. Export sales are projected to account for %15‑16 of total revenue by 2025.

■Export Share (2025): %15‑16

■Continents Served: 3

■Countries Exported To: >15

Financial Forecast and Key Indicators

KAPEKS forecasts revenue of 3.84 billion TL for 2025. Its revenue stream includes civil‑use explosives for mining, dam construction, metro tunnels, road tunnels, and high‑speed rail projects.

■2025 Revenue Target: 3,840,000,000 TL

■Product Portfolio: ANFO, emulsion explosives, shock tubes, geotechnical analysis, etc.

■Investment Themes: Renewable energy, semiconductors, rare‑earth elements, defense industry

Fatih Kılıç – Expert Analysis: The KAPEKS IPO stands out as Turkey’s first major capital raise in the civil‑use explosives sector, signaling a pivotal shift for the domestic chemicals market. The offering size aligns with a rising demand for infrastructure‑related explosives across the region. The balanced allocation—favoring retail and institutional investors while reserving a modest slice for high‑net‑worth participants—should broaden the shareholder base and support price stability, especially with TSKB and Ziraat Investment’s price‑stabilization mechanisms in place. The upcoming second shock‑tube line, slated for 2026, is a critical catalyst for capacity expansion and revenue diversification. In the short term, post‑IPO liquidity and price volatility are likely to be muted; medium‑term upside hinges on the projected export growth and the successful rollout of new facilities. Investors are advised to weigh the international expansion and technology‑driven investments against the inherent sector risks, ensuring a balanced risk‑return assessment.