Contemporary Glass IPO to Be Held on December 11-12 via "Sale on the Stock Exchange" Method
Çağdaş Cam, which has the first design center in the glass sector in Turkey and ranks among the largest glass processing companies in Europe, is going public. The public offering will be conducted under the "Sale on the Stock Exchange" method on December 11-12, 2024, led by Deniz Yatırım, on the Borsa İstanbul Primary Market. The offering will occur at a fixed price of 20 TL per share and can be accessed with the code CGCAM.HE.
As a result of increasing Çağdaş Cam’s paid-in capital from 137 million TL to 168 million TL, shares with a nominal value of 31 million TL will be offered for capital increase, while shares with a nominal value of 11 million TL will be offered for sale. The total size of the public offering, involving shares with a nominal value of 42 million TL, will be 840 million TL.
"We aim to support the reduction of the current account deficit by providing foreign currency inflow to our national economy." Serdar Raşit Pirinç, a member of the board of directors of Çağdaş Cam, stated, “We have become one of the largest glass processing companies in Europe since we embarked on our industrial journey nearly half a century ago. Since our establishment, we have increased our production capacity through our investments while continuously expanding our product portfolio in response to rapidly changing customer demands. We aim to produce solutions for future challenges with our organizational capabilities. Currently, we have an annual glass processing capacity of approximately 7.1 million m² in our factories located in Manisa OSB and Aydın Kuyucak. In 2023, we processed around 4.3 million m² of glass, and we have a target of processing approximately 5 million m² and more in 2024. We anticipate closing the year with growth aligned with our targets. In our Nazilli OSB facility, we conduct glass sales of approximately 37,000 tons per year. Our Kuyucak factory primarily processes glass for the home and commercial white goods sector, and with this facility, we became the first company in Turkey to establish a design center in the glass sector. Through our design center, we aim to develop many new products in white goods glass, adding value to the sector. We believe that our factory in Manisa OSB, which processes energy glass, is an important investment that meets global standards and serves the main players in the industry. Through this investment, we aim to assist in reducing imports, contributing to the decrease of the current account deficit, and continue providing foreign currency inflow to the national economy through exports,” he said.
"We aim to grow through value-added products and exports." Pirinç expressed that they have adopted an export-oriented growth strategy, stating, “We aim to provide our customers with the highest value by improving energy efficiency, safety, aesthetics, and other features of glass. We seek to strengthen our competitiveness by increasing the diversity and production volume of high-quality, innovative, and value-added products. Accordingly, we closely monitor market trends and customer demands, guiding our products and services according to innovations. We also continue to invest in R&D. Expanding our product range remains among our primary objectives. As Çağdaş Cam, we recognize the strategic importance of the energy sector for Turkey and have proactively completed our investment in Manisa OSB despite pandemic conditions to respond to the rapid growth and technological advancements in the solar power plants—a rapidly growing segment. Unlike many similar facilities worldwide, we have established a production line that can process 2 mm solar energy glass, thus contributing to reducing the current account deficit by offering the latest products in solar panel glass to the sector. To meet the demand for solar panel glass, which we anticipate will accelerate due to the increase in licensed solar power plants, we have completed our additional automation investment in Manisa OSB. We also predict growth in processing greenhouse glass in parallel with developments in agriculture, particularly in white goods glass. We believe that the new facilities we are launching and our capacity increase will further enhance our export-oriented growth strategy,” he remarked.
Around 1.9 billion TL in revenue in the last 12 months. Pirinç also provided comments on the company’s financial situation, stating, "In 2023, we achieved revenue of approximately 2.2 billion TL. As of September 30, 2024, our revenue for the last 12 months reached approximately 1.9 billion TL. While we generated around 483 million TL in EBITDA in 2023, we reached approximately 494 million TL in EBITDA over the last 12 months. Our EBITDA margin was around 26%, and our gross profit margin was approximately 30% in the last 12 months. We assess that our financial debt is at a very limited level. We will not use the revenue from the public offering to pay off financial debts; instead, we aim to evaluate it in new investments and strengthen our working capital," he added.
"We aim to operate as a company covering approximately 100,000 m² with new investments." Providing insights on investments, Pirinç stated, "We have completed the rough construction of an additional 9,000 m² area in Manisa OSB, one of Turkey's leading organized industrial zones housing significant brands in the white goods sector, known for its logistical advantages and ability to produce its own energy. This area is now used as a loading area and warehouse. We also have an additional plot of approximately 30,000 m² that we purchased with a allocation in 2022, for which payments are ongoing. We plan to begin the construction of our second factory on this plot by December 2024. We intend to allocate part of the revenue from the public offering towards establishing our new factory and investing in machinery and equipment. When our new factory is operational, we aim to become a company operating over an area of approximately 100,000 m².
With the 3.7 MW solar energy system we have implemented on the rooftops of our Manisa and Nazilli factories, we are meeting part of our electricity consumption with the renewable energy we produce. To meet the energy needs of our new factory and contribute to our sustainability goals, we plan to implement rooftop and land-based solar energy systems. We also aim to allocate part of the revenue from the public offering for this investment.
We plan to make investments for the transformation of the digital infrastructure and service systems across all of our facilities. In the digital transformation process, we emphasize ERP, machine learning, and lean production methodologies. Our goal is to turn our facilities into dark factories, thereby improving our product cost levels to compete globally.”
"We want to walk towards our goals with our investors." As Çağdaş Cam, we aim to be one of the leading glass processors within global glass supply chains. To achieve this goal, we believe we have an efficient production line, a sustainable cost structure, accountable, transparent, corporate, and ethical management principles, as well as agile and high-scale supply capabilities coupled with the technical and human infrastructure necessary to successfully manage a business branch. Through this structure, we aim to be a company that adds value to our stakeholders. We believe that our public offering is an important milestone that will gain us momentum along this path. We wish to walk towards our goals with investors who evaluate Çağdaş Cam based on value rather than price. Our aim is to make Turkey a partner in the future of glass.”