Türkiye’s Aydem Group plans IPO for grid operator in 2025

(Bloomberg) — Turkish power generator and distributor Aydem Enerji Yatirimlari AS is preparing for initial public offerings of two of its subsidiaries in the first half of 2025.

Aydem Enerji CEO Serdar Marangoz said in an interview that the group is planning to list GDZ Elektrik Dagitim AS and ADM Elektrik Dagitim AS on the Istanbul Stock Exchange, which may value the two grid operators at US$2.2 billion and US$15. billion dollars.

Marangos said investment banks have been sounded out to arrange an initial public offering and a final choice will be made soon. He did not elaborate on the shares that would be offered or the amount of capital the company is seeking to raise.

“If all market conditions are favorable, we could do an IPO in the spring,” said Marangos, who took over as CEO last month.

These expected listings bode well for a resurgence in Turkish IPO activity as the Borsa Istanbul 100 index recovers from a slump that followed a record high mid-year. Tighter monetary policy has made first-time share sales less attractive to local investors, prompting them to favor mature stocks and interest-bearing bank deposits.

GDZ Dagitim and ADM Dagitim had plans to go public as early as 2018, but they were shelved when Bereket Enerji (as their parent company was known at the time) had to restructure $4.7 billion in loans the following year.

Türkiye has 21 power grids, all of which were privatized through 30-year concession agreements in the early 2010s.

Marangos said the companies would use proceeds from the offering to invest in their grids and repay borrowed money. GDZ Dagitim sells electricity to 3.9 million customers, holds an 8% share of the Turkish electricity distribution market, and has annual regulatory investment obligations of approximately $160 million. ADM Dagitim serves 2.2 million users and has made similar commitments of $120 million, according to Marangoz.

Marangoz said ADM Taqim’s IPO may come first as GDZ Taqim is also considering an additional $400 million bond issuance deal starting in October.

Marangoz said Aydem Enerji’s listed renewable energy unit Aydem Yenilenebilir may offer new shares to raise funds for investment in power generation capacity. Aydem Yenilenebilir will also refinance its $750 million 2027 bonds next year, he said.

More stories like this can be found at Bloomberg.com