Koton
Turkey’s Leading Fashion Brand Koton Goes Public. The public offering application of Koton has been approved by the Capital Markets Board (CMB). Demand will be collected for 30.50 TL per share between April 30 and May 2-3. Koton plans to have a public float of 16.5%.
Established in 1988, Koton designs and sells collections in the ready-to-wear retail sector, meeting all clothing needs for women, men, and children under the ‘one stop shop’ category. With trend designs, special collection collaborations, and projects, Koton has been selected as the most liked women’s brand 10 times in the last 11 years*. Based in Istanbul, Koton operates with a global and corporate approach, with over 7,900 employees.
Koton, which sells its brand in 70 countries, is now going public with the aim of further strengthening its corporate and financial structure and expanding its investments. The approved prospectus for the public offering is available on Koton’s corporate.koton.com.tr website and has been published by the consortium leader İş Yatırım Menkul Değerler and the consortium co-leader Ak Yatırım Menkul Değerler, as well as on the Public Disclosure Platform (kap.org.tr).
With its domestic and international activities, Koton increased its consolidated revenue to approximately 17.2 billion TL by the end of 2023, including franchise stores, and achieved a gross profit margin of 52.0% and an EBITDA margin of 26.6% as of December 31, 2023.
In the public offering, a total of 136,600,000 class B shares will be offered for sale, including existing shares owned by the Yılmaz family and Nemo Apparel B.V., as well as newly issued shares through a capital increase. Accordingly, the company plans to have a public float of 16.5%. The proceeds from the public offering, 30-40% will be used for domestic and international store openings and renovations, warehouse automation investments, and information technology investments, while 60-70% will be allocated for working capital financing for product purchases aimed at growth. Within the framework of the profit distribution policy, it is aimed to distribute at least 20% of the distributable net profit to shareholders.
PUBLIC OFFERING SUMMARY
- Pre-offering capital: TL 795,500,000
- Capital increase: TL 34,150,000
- Post-offering capital: TL 829,650,000
- Number of Shares Offered in the Public Offering: 136,600,000 class B shares
- Unit share price: TL 30.50**
- Public Offering Size (assuming all shares are sold): TL 4,166,300,000
- Public Float (assuming all shares are sold): 16.5%
- Consortium Leader: İş Yatırım Menkul Değerler A.Ş.
- Consortium Co-Leader: Ak Yatırım Menkul Değerler A.Ş.
*According to Turkey’s 1st Number Brands research, conducted by the Shopping Centers and Investors Association (AYD) and Akademetre Research.
**There is no discretion or approval authority by the CMB or Borsa Istanbul A.Ş. in determining the offering price.
Investors are required to make their investment decisions by reviewing the prospectus published on the specified websites and the sales announcement to savings deposit holders.