Kimpur's IPO Approved by the CMB

Kimpur's IPO Approved by Capital Markets Board The initial public offering application of Kimteks Polyurethane Industry and Trade Inc. (Kimpur) was approved by the Capital Markets Board (SPK) on 14 April 2022. 27.15% of Kimpur's shares will be offered to the public following SPK approval on 14 April 2022. In case of excess demand, an additional sale of up to 15% of the total shares to be offered to the public may be conducted. Demand collection for Kimpur shares will take place on 20-21-22 April. The share price was set at TRY 29.00. With technologies, innovations and strategies providing competitive advantage, Kimpur has increased production capacity by 98% over the last three years, from 65,000 to 129,000 tons, sales volume (tons) grew by 100%, and export ratio rose to 27% in 2021.

Total 33,000,000 TRY Par Value Shares to Be Offered to Public

According to 2020 ISO 500 data, Kimpur ranked 314th. The company applied for prospectus approval for the purpose of going public on 25 February 2022. Kimpur's initial public offering application was approved by SPK on 14 April 2022. The prospectus approved by SPK will be accessible from Kimpur's website and the Public Disclosure Platform. The demand collection date for Kimpur shares was set as 20-21-22 April and the share price as TRY 29.00. Due to the increase of Kimpur's issued capital from TRY 110,000,000 to TRY 121,550,000, a total of TRY 33,000,000 par value shares will be offered to the public, consisting of TRY 11,550,000 par value shares to be increased and TRY 21,450,000 par value shares held by existing partners. In case of excess demand, TRY 4,950,000 par value shares held by existing partners and corresponding to 15% of the company's total shares to be offered to the public may be added to the shares offered under the "additional sale" scheme. 65% of the shares to be offered to the public will be conducted through secondary sale and 35% through capital increase.

Allocation Rates Will Be 60% for Domestic Individual Investors and 40% for Domestic Institutional Investors

A consortium of 19 brokerage firms led by Turkish Industrial Development Bank (TSKB) and co-led by TSKB subsidiary Investment Finance Securities will mediate the sale conducted through demand collection. In the initial public offering to be conducted using the proportional sale method, allocation rates were decided to be 60% for domestic individual investors and 40% for domestic institutional investors. 30% of the gross proceeds from the secondary sale to be conducted may be used for price stabilization transactions for 30 days from the date the shares begin trading. Within the scope of the commitment made, Kimpur targets distributing 50% of distributable profit annually to its investors.

"Our Goal Is to Increase Brand Recognition in Global Markets and Achieve Rapid Growth"

Kimpur Inc. Board Chair Leon Mizrahi made statements on the matter. Mizrahi said: "We serve more than 1,000 customers in total with 600 different system product codes, export approximately 30% of our production to more than 45 countries, thereby contributing positively to the country's current account, and as one of the leading chemical industry companies ranking 314th according to ISO 500 data published for 2020, we continue on our path strongly. We are now going public to further strengthen our corporate and financial structure and increase our investments on the path to becoming a global brand. Our goal is to increase brand recognition in global markets and achieve rapid growth, and we are confident that we will succeed as a publicly traded company with a strong capital structure. We are proud to have reached this point as a strong chemical industry company with a healthy balance sheet, sustainable growth performance, 39 years of experience, and 100% domestic capital." he said.

"We Target Distributing 50% of Distributable Profit Annually to Our Investors"

Kimpur CEO Cavidan Kara, making statements regarding the approval of initial public offering applications by SPK, said: "As one of Turkey's 100% domestic polyurethane system manufacturers, Kimpur is among the limited companies of our country and the world in its sector through technology and R&D investments. As a reliable business partner, at our production facility with annual capacity of 129,000 tons and advanced technology, we support our customers operating in almost all sectors to be more successful by increasing our competitiveness based on operational excellence and the 'Smart Business Model'. Kimpur R&D, one of our most important competitive advantages, is registered as a Research and Development center by the Ministry of Industry. Through this, the company has continued to accelerate growth momentum and make major breakthroughs, particularly over the last five years. According to current acquisition costs, Kimpur has invested approximately 25 million euros, and over the last five years has made investments of approximately 5.5 million euros. With our competitive advantage technologies, innovations and strategies, we increased our production capacity by 98% over the last three years, raising it from 65,000 to 129,000 tons. During the same period, our sales volume (tons) grew by 100% and our exports reached 27% in 2021. Our application to SPK for an initial public offering to achieve a stronger corporate structure, increase our competitiveness in international markets, and finance our new investments was approved. We want to make corporate and individual investors partners in our success and grow together. Our company has long had a culture of distributing dividends annually, and we are transferring this culture to the Stock Exchange with the initial public offering, and we target distributing 50% of distributable profit annually to our investors so they also benefit directly from our profitability," he said.

We Have Completed Planning for a New Production Facility in Düzce

Karaca also spoke about Kimpur's new investments. Karaca said: "We have completed planning for a new production facility in Düzce and have begun investment. We have concluded an agreement worth approximately 9 million dollars including VAT with Pekintaş Inc. group for building construction and solar power plant for the Düzce investment, which will exceed 15 million dollars in total investment cost. We target reaching the Düzce Gümüşova Organized Industrial Zone investment, which will have annual capacity of 65,000 tons, with 50,000 tons of existing product group polyurethane systems, 5,000 tons of recycling facility manufactured from PET waste synthesis within the scope of our green product range, and 10,000 tons of additional 'eva granule raw material' capacity by 2022-2024. In Latvia, we took an important step in line with our objective to strengthen our presence in Europe with our investment in 25,000 tons capacity. Within the scope of the protocol, we partnered with 'Adamantan SA' and established partnership with the new company named SIA Kimpur Europe established in Latvia. SIA Kimpur Europe, created with 75% Kimpur partnership and with registration procedures completed, continues its operations as a Kimpur subsidiary," he said.