Kimpur Ready for IPO in April
Postponing its public offering during the exchange rate fluctuation in December, Kimpur submitted its prospectus, which included its data as of December 31, 2021. Cavidan Karaca, CEO of the company, which expects to go public in April, said that “Procrastination is not a disadvantage. We grew by 20 percent in capacity and 131 percent in turnover.”
Postponing its public offering during the exchange rate fluctuation at the end of the year, Kimpur submitted its prospectus, which also included last year’s data. Cavidan Karaca, CEO of the company, which expects to go public in April, said, “Procrastination will not be a disadvantage for us. We also added our data as of December 31, 2021. In this period, our capacity increased by 20 percent and our turnover increased by 131 percent. We have a commitment to distribute 50 percent of the distributable profit.”
Kimpur, Turkey’s first 100% domestic polyurethane system manufacturer, produces shoe soles, rigid foam systems for the white goods industry, products for the automotive industry and carpet-playground floors.
In her interview with World, Kimteks Poliuretan San. ve Tic. AŞ (Kimpur) CEO Cavidan Karaca state that, “Due to the foreign exchange movements in the last week of December, we have decided to postpone the public offering, anticipating that the planned benefit for the company will not be achieved. As of December 31, we hoped that we would obtain data above our targets and show our growth, but with this postponement, we have the opportunity to demonstrate all this. At the moment, we have given the content of the prospectus with the revised data as of December 31th , which includes consolidated data, and our expectation is that the public offering will take place in April.”
Kimpur closed the year 2021 with a capacity of 88 thousand tons which is above their targets and thus achieved 20 percent physical growth, Karaca said, “We grew 131 percent in terms of turnover,” and added: “Both 20 percent physical growth, exchange rate increase and raw material prices increase. We achieved a turnover growth of 131 percent in total. We have reached a sales turnover of 2 billion 170 million TL. This number was 940 million Turkish liras in the previous year. We had a capacity of 120 thousand tons. In the report we received after our productivity study, we see that we have reached a capacity of 129 thousand tons. Since we use a lot of capacity, we made investment decisions.”
‘We have a commitment to distribute 50 percent of the profit’
On the question of whether the postponement of their public offerings will create a disadvantage for them, Karaca said, “It will not create a disadvantage. There is only three months of revision. During this period, we showed that we could achieve much better business results and presented a much better consolidated balance sheet. In addition, we have a serious profit growth such that our profitability was 80 million TL in the previous year, but according to the independent audit report, we increased it to 316 million TL. We achieved almost 300 percent profit growth. We have a commitment to distribute 50 percent of the distributable profit. In this sense, we think that we will be one of the biggest public offerings of 2022. We guarantee this dividend every year. As we had a very good year in 2021, we think it will be one of the important factors in our preference.”
Noting that there is no change in the public offering plans, Karaca said, “We are planning to use 30 percent of the total share of the public offering as joint sales and 25 percent as a capital increase. We plan to use 50 percent of the resource from here in the financing of Düzce investment, and the remaining 50 percent as working capital and existing loan expenditures to go downsizing,” she said.
Production in Düzce will start in 2023
Providing information about investments, Karaca said, “We had bought the land in Düzce before. We have not reached the final stage yet, but the project phases have been completed. We even added a solar investment for sustainability. We were planning an average investment of 13-13.5 million dollars for Düzce, but we moved the budget up to 15 million dollars.”
Karaca said, “We are planning to finalize the agreement with the company that will design and build the project in March. We chose our architec; we want to start at the end of March. Our aim is to complete Phase 1 of the construction in September and the entire machinery park in December, and to start production in 2023. The facility we will establish in Düzce OSB is in the 3rd Region with incentives. With 50 percent of our public offering revenues, we will be able to finance it easily. We foresee to complete the investment in Düzce in 3 phases in a period of 2.5 years,”
“We are building an additional 50 thousand tons of polyurethane plant. Besides, we have a decision to invest in a 5 thousand-ton polyol facility for shoes originating from a recycling product, the pet product synthesis. We are planning a total investment of 65 thousand tons, including a 10 thousand tons of eva investment, to expand the eva production, which is the new business group we have entered,” said Karaca, adding, “Although we gave up on the public offering, we continued the project there, but it will end with the public offering.”
55 percent of the energy in and 20 percent in Gebze will come from the sun
Stating that Kimpur, which published its first sustainability reports last year, announced its 2021 Sustainability Report last week, Cavidan Karaca said: “Last year, we became a member of the Business Plastics Initiative. We have commitments to that. We believe that we have undertaken a pioneering role in the sector with our sustainability sensitivity and our intention to create a green product range in compliance with SA 8000, Environmental Production System ISO 14000, GRI standards. We are doing good work in parallel with our global competitors. We are installing a solar power plant (GES) on the roof of our factory in Düzce. Thus, it is planned to meet 55 percent of the energy need of the facility we will establish in Düzce for the first two years. At the same time, we agreed with Schmid Pekintaş to install a solar energy panel in Gebze, we designed and invested in it. Infrastructure work has now started. There, we will produce about 20 percent of our energy ourselves.”
With the participation of Latvia, it will compete with the giants
Regarding the Latvian investment, Cavidan Karaca said: “75 percent of our production in Latvia is our own subsidiary and 25 percent is owned by our partners. All deals and prepayments have been made. All we expected was commercial registration. We had delays due to Latvia’s bureaucracy, but we were informed that the process would be completed as soon as possible. We will work mainly on Southern and Eastern European markets. We have a capacity of 25 thousand tons in Latvia. In other words, with these two investments in polyurethane, we are on our way to become one of the largest capacities in the world that can compete with global players with a total capacity of 200 thousand tons.
The goal of increasing exports above 30 percent by the end of this year
Karaca, who also gave information about exports, said, “Last year, our export rate was around 28 percent. This year, we have a total sales target of 100 thousand tons, roughly domestic and international. We expect 30-31 million Euros of this 100 thousand tons to come from export and export-based sales. In other words, we aim to increase our exports above 30 percent this year. This will make us safer in terms of working capital, short maturity and will relieve us in terms of foreign exchange balance”.
43% of the management level is made up of women.
Reminding that companies such as banks are required to have a credit rating, Cavidan Karaca said, “Credit rating agency JCR Avrasya Rating AŞ announced the evaluation rating of our company. According to JCR’s report, our company was included in the ‘highly investable’ category and its long-term national credit rating was ‘AA-‘. I just want to add one more thing. Many events have been organized for March 8th this month. As a company, we are a good workplace for women. Our rate of women in the white collar is 41 percent. This rate is 43 percent in the management level,”