Sun Tekstil will Direct the Income from the Public Offering to Investment
One of the largest textile companies in Turkey, Sun Tekstil Industry and Trade Inc.’s application for the public offering was approved by the Capital Markets Board (CMB) on April 28, 2022. Sun Textile, of which 17.26% of its shares will be offered to the public, will be able to increase the total share up to 20.71% in case of excessive demand. Bookkeeping for the shares took place on 11-12-13 May 2022. The share price was determined as 26 TL.
Established in 1987, Sun Tekstil designs, produces, supplies, and sells women’s clothing collections for global brands operating in the ready-to-wear retail industry. The company carries out its activities with a global and corporate administrative mentality with its modern production facilities in İzmir- Torbalı and Manisa, 4 design offices in London, and Leicester in England as well as in La Coruna in Spain, and qualified personnel of more than 1700 people
Sun Tekstil also produces knitted fabrics and sells fabric collections through its subsidiary Ekoten Tekstil Industry and Trade Inc. Ekoten Tekstil ranks 216th in the ISO Second 500 and ranks 61st in the Aegean Region Chamber of Industry 100 Largest Industrial Enterprises list.
Exports more than 90% of its products
Sun Tekstil, which increased its consolidated turnover by 70.3% to 2.2 billion TL by the end of 2021 and exported 93% of its production in 2019, 98% in 2020, and 96% in 2021, goes public to expand its investments by further strengthening its corporate and financial structure.
50-60% of the income to be obtained from the public offering to be realized under the leadership of the QNB Finance Investment Securities Inc. consortium will be spent on investment, 15-20% will be used for working capital, 25-30% will help reduce the current financing costs and 3-5% is going to be used for R&D studies. Within the framework of the profit distribution policy, it is aimed to distribute at least 30% of the distributable profit to the investors as cash dividends.
‘‘We contribute positively to Turkey’s current account balance with our exports’’
Sun Tekstil Chairman of the Board Elvan Ünlütürk stated the following regarding the subject: ‘‘We have plans for new machinery purchases for both Sun Tekstil and Ekoten, for the development of digitalization processes, for the use of technologies for less water and energy consumption, the opening of new design offices in Germany or Italy and to establish a new production facility in Izmir. As a 35-year-old 100% domestic capital textile industry company with a healthy and solid balance sheet, sustainable profitable growth performance, I strongly believe that going public will strongly support reaching these goals.’’
The textile sector is Turkey’s fourth-largest exporting sector
Sabri Ünlütürk, Vice Chairman of the Board of Directors of Sun Tekstil, pointed out that the textile industry has made a great contribution to Turkey with the volume it has brought to the country’s economy and the employment it has created. Ünlütürk continued as follows, ‘‘The use of technology is increasing intensively in the textile and clothing sector, as it is in every sector. We are one of the pioneers in the field of digitalization and technology in the textile industry. In addition, as our industry and our company, we are now developing high value-added products such as technical textiles, which are much more difficult to manufacture and require cutting-edge technology compared to necessities 20 years ago. Therefore, we can confidently claim that the future of the industry is very clear.’’
