Merinos prepares for major IPO to fund growth and reduce SASA debt

Merinos, the world's largest machine carpet manufacturer under Erdemoğlu Holding, is preparing for a major initial public offering (IPO) on Borsa Istanbul. The company aims to complete the process by the end of the year and plans to allocate at least 50% to 66% of the shares to international institutional investors.

Proceeds from the IPO will be used to finance existing investments and strengthen the group's financial structure. A key strategic goal is to use a portion of the funds to reduce the financial leverage ratio of SASA, another group company, which previously faced high debt due to macroeconomic instability, the war in Ukraine, and local earthquakes. Leadership aims to bring SASA's leverage ratio below 4 by 2027.

Merinos expects to reach an annual turnover of approximately $1 billion by 2027, driven by a new $270 million polyester chip facility scheduled to become operational in October. Management emphasizes that the company is no longer just a carpet manufacturer but an integrated industrial group involved in raw materials and petrochemicals.