Ran's subscription to the bourse will be the first initial public offering (IPO) in 18 months, and this is widely accepted by investors as the return of confidence in Turkish capital markets after a difficult period in the global crisis.
The company, which had recently raised its registered capital from TL 7.1 million to TL 12.7 million, is initiating an IPO for part of its capital with a nominal value of TL 3.1 million. Ran is planning to employ the revenue from the sale of its shares in warehouse and distribution center investment. Ran released the details of its offering in a press conference on Thursday in İstanbul. Galata Securities is overseeing the sale as the authorized intermediary institution. The base price was determined to be TL 2.86 per share, and the projected total revenue from this price is calculated at TL 9.15 million. Ran will be the second logistics company in the İMKB after Reysaş.
Ayhan Öztürk, the chairman of CFK & Partners, a corporate financing consultancy company that will operate as consultants to Ran during the IPO, wished Ran success in its initiative to trade shares on the bourse and expressed the hope that this would trigger other IPOs which have long been pending due to the global financial crisis. “The logistics sector is not sufficiently represented on the stock market. We hope to see other logistics companies in the bourse, too.”
Öztürk recalled that Ran was indeed planning an IPO in 2008 but had to suspend its plans fearing a lack of investor demand amidst the crisis. “Although the crisis still persists in the real sectors, the financial sector has averted it. We have initiated the IPO believing that now is the most suitable time for this. God willing, we will accomplish the IPO successfully,” he said.
Öztürk underlined the significance of investment in warehouses and distribution centers, seeing it as one of the most profitable areas at present. As an example to show its profitability, he mentioned about the growing interest of investors from the Gulf region in this area. “Our investment projection is $11 million, and we are predicting that this investment will pay off in five years. We are planning to register a high profit from these investments and share it with investors. The profit margin in warehouse and distribution center investment is nearly 50 percent,” he noted.
The nearly TL 2 million difference between the estimated IPO revenue and the cost of investment will be met by the companies equities and external resources, Öztürk said. The company submitted its application for the IPO to the Capital Markets Board (SPK) on June 19 and received an affirmative answer in 80 days, a record time in terms of securing approval. Ran Logistics Chairman Ramiz Benli also made a brief speech and provided some details about the performance of his company. Ran's total turnover reached TL 39 million in 2008, and the company expects to earn between TL 32 and TL 35 million in 2009.
