Kardemir Çelik's 4.48 Billion TL IPO: Record Demand and Vertical Integration Power

Kardemir Çelik Sanayi AŞ has raised 4.48 billion lira from capital markets, reflecting its rising integrated production capacity and global export network in the Turkish industry; the company's public offering attracted interest surpassing 4 times its size during the order book building process, exceeding market expectations.

Investor Interest and New Shareholder Structure

The company's IPO process was completed with intense participation from individual and institutional investors, with over 841,000 investors submitting bids during the period. The post-allocation landscape indicates a deepening and broadening of the company's ownership structure.

■The IPO size amounted to 4.48 billion lira.

■Bids were received from 841,000 investors during the 3-day order collection period.

■Following the distribution, 814,853 new investors became shareholders in the company.

Vertical Integration in Production and Capacity Surge

Kardemir Çelik's strategic moves over the last 4 years have transformed it from a mere manufacturer into an integrated structure extending to raw material procurement. The liquid steel production facility commissioned in 2022 marked the tipping point for this integration.

■Total production capacity has increased 4-fold in the last 4 years, reaching 2.5 million tons.

■The company comprises 5 steel production plants, 5 auxiliary plants, and 2 renewable energy plants.

■Products are exported to 110 countries; key markets include energy, machinery, shipping, and hardware sectors.

Fund Usage: Working Capital Focused Strategy

The allocation of funds from the IPO aims to bolster the company's financial robustness. The completion of a significant portion of investments allows the obtained cash to be directed towards operational efficiency.

■90 percent of the IPO revenue will be used for working capital and financing raw material supply.

■This strategy aims to reduce financing costs in the coming period.

■Resources will be channeled into producing higher value-added products and expanding the customer network.

Seda Çetin: Looking at market data, I see it as a critical signal that 90% of the IPO funds are allocated to working capital. This indicates that the CAPEX risk is largely behind the company and they are focusing on a strategy to protect margins by minimizing borrowing costs in a high-interest environment. The completion of vertical integration (raw material production) makes Kardemir more resilient against volatile commodity prices; this serves as a key fundamental analysis signal for HFT bots when establishing long positions.