Net Global Industrial Investments to Enter Wagon Production Through Initial Public Offering

Sivas-based plastic pipe manufacturer and energy investor Net Global Industrial Investments is preparing to float 28 percent of its shares. A significant portion of the total funds raised will be used for wagon production, capacity increase, and working capital.

First Sivas-based Company on Borsa İstanbul

Net Global Industrial Investments, which will be the first company from Sivas to go public on Borsa İstanbul, manufactures plastic pipes, produces and exports soil-less tomatoes, and operates in the field of renewable energy.

The company is preparing to meet investors from capital markets by making a total 28 percent public offering of its shares.

IPO Details and Share Distribution

During the public offering process, shares with a nominal value of 62 million 500 thousand TL will be offered through a capital increase, and shares with a nominal value of 25 million TL through partner sales.

With the public offering of shares with a total nominal value of 87 million 500 thousand TL, the company's capital will increase from 250 million liras to 312 million 500 thousand liras.

Giant Investment for Wagon Production

The company has allocated 20 to 30 percent of the revenues to be obtained from the IPO for wagon production and plans factory investments in Sivas Demirağ OIZ within this scope.

CEO Berk Kuter drew attention to the scarcity of total wagons in Turkey and stated that they aim to produce 3,000 freight wagons annually under the NETRAIL brand.

Areas of Use of Resources

25-35 percent of the funds provided from the offering will be utilized for working capital, and 20-30 percent will be evaluated to reduce short-term bank loans.

In addition, 15-25 percent of the revenues will be allocated for capacity increase and the establishment of a corrugated pipe production line.