KİMPUR Applies to CMB for Public Offering

KİMPUR Files IPO Application with Capital Markets Board Kimteks Poliüretan Sanayi ve Ticaret A.Ş. ("KİMPUR"), a chemical industry company ranked 350th in 2019 and 314th in 2020 according to published ISO 500 data, submitted an application to the Capital Markets Board (SPK) on 19 October 2021 for prospectus approval with the aim of going public. If approved by SPK, KİMPUR will offer 30% of its shares to the public. Over the past 5 years, the company increased its production capacity by 84.6%, raising it from 65,000 tonnes to 120,000 tonnes. In the same period, it increased its workforce by 132% while sales grew by 156%. According to 2020 data, export revenues constitute 32.5% of KİMPUR's total turnover of TRY 938.8 million. In the same period, the company increased exports 4.7 times and achieved real increases of 16% in sales and production volumes in 2020, despite the pandemic. The draft prospectus submitted for SPK approval regarding the public offering of KİMPUR shares was published on KİMPUR's website (www.kimpur.com) and on the website of Türkiye Sınai Kalkınma Bankası Anonim Şirketi ("TSKB") (www.tskb.com.tr), which was authorized as the lead underwriting bank, as well as on the Public Disclosure Platform (www.kap.org.tr). KİMPUR, a 38-year-old chemical industry company that manufactures polyurethane systems for various sectors including automotive, footwear, furniture, construction and building, will, upon SPK approval, increase its issued capital from TRY 110,000,000 to TRY 118,250,000. A total of 8,250,000 Class B shares with a nominal value of TRY 8,250,000 from the capital increase and 24,750,000 Class B shares with a nominal value of TRY 24,750,000 held by existing shareholders will be offered to the public. Additionally, in the event that confirmed demand exceeds the number of shares offered for sale, shares with a total nominal value of TRY 4,950,000 held by KİMPUR's existing shareholders and corresponding to 15% of the company's total shares to be offered in the IPO may be added to the shares offered under the "over-allotment" provision. The company will complete applications to Borsa İstanbul A.Ş. and Merkezi Kayıt Kuruluşu A.Ş. in addition to SPK in the coming weeks to obtain the necessary permits for the public offering. Should KİMPUR's application be approved by SPK, 75% of the shares offered to the public will be conducted through secondary offering and 25% through capital increase.

KİMPUR Active in Domestic and International Markets with 600 Different Products

KİMPUR A.Ş. Board Chairman Leon Mizrahi made the following statement on the matter: "We serve more than 1,000 customers with 600 different system product codes, export 32.5% of our production to more than 40 countries, contributing positively to our country's current account, and we continue our path strongly as one of the leading chemical industry companies ranked 314th in ISO 500. We want to go public now in order to further strengthen our corporate and financial structure and increase our investments on the path to becoming a global brand. Being a publicly listed company that will increase brand recognition in our target sectors such as major automotive manufacturers and markets like Western Europe will enable us to advance rapidly in both the Turkish and international markets. We take pride in having reached this stage as a 38-year-old chemical industry company with healthy and solid balance sheets, sustainable profitable growth performance, and 100% domestically capitalized strong structure."

KİMPUR CEO Cavidan Karaca made the following statement regarding the IPO application:

"As one of Turkey's first 100% domestically capitalized polyurethane system manufacturers, KİMPUR is among the limited companies in its sector in Turkey and the world through technology and R&D investments. As a reliable business partner, at our production facility with annual capacity of 120,000 tonnes and advanced technology, we support our customers operating in virtually all sectors to be more successful by enhancing our competitive strength based on operational excellence and our 'Smart Business Model'. KİMPUR R&D, one of our most important competitive advantages, is registered as an R&D centre by the Ministry of Industry. Through this, our company has continued to accelerate growth momentum and execute large-scale initiatives, particularly over the past 5 years. With investments valued at approximately EUR 25 million according to current acquisition costs, KİMPUR has made approximately EUR 5.5 million in investments over the past 5 years. With our competitive advantage technologies, innovations and strategies, we increased production capacity by 84.6% over the past 5 years, raising it from 65,000 tonnes to 120,000 tonnes. Between 2016 and 2020, our workforce grew by 132% and our sales grew by 156%. In the same period, we increased our exports from TRY 64.8 million to TRY 305 million, an increase of 470%. Even in 2020, when the pandemic dominated the world economy, we managed to increase sales and production volumes—real physical growth compared to 2019—by approximately 16%, and achieved an increase of 46% in the first 6 months of 2021. Now we have filed an IPO application with SPK to achieve a stronger corporate structure, increase our competitive strength in international markets, and finance our new investments. We want to bring corporate and individual investors into partnership with our successes and grow together."