Aydem renewables unit may reach USD 1.5 billion in stock market debut

Aydem Holding reactivated the plans to float its green energy portfolio at the Istanbul exchange, aiming to raise USD 300 million, according to information obtained by Bloomberg. It would value the renewables division at as much as USD 1.5 billion.

Aydem Yenilenebilir Enerji started to prepare again for an initial public offering at the stock exchange in Istanbul, Bloomberg reported, quoting unnamed people with knowledge of the matter. They added the original plans were delayed due to the COVID-19 pandemic. The anonymous insiders estimated the renewable energy unit of Aydem Holding could be valued at as much as USD 1.5 billion.

The Turkish company, formerly known as Bereket Enerji, reprogrammed its debt in July of last year. Nine banks agreed to restructure a package of USD 4.6 billion.

Green energy capacity held by Aydem tops 1 GW

The debut of the renewables firm at the Borsa Istanbul was included in the provisions of the deal. Aydem Yenilenebilir Enerji operates just above 1 GW, mostly in hydroelectric and wind power plants. It has 20 hydropower facilities with a total capacity of 852.1 MW and three wind parks.

The sources revealed advisers are working on the stock market offering for Turkish and overseas investors and said the holding would announce the plans soon in a financial update. Aydem, based in Denizli in the country’s southwest, aims to raise USD 300 million in the process, they stressed.

Istanbul IPO seen surpassing total result since start of 2018

It would make the IPO the largest in Turkey in more than three years and the initial share offerings at the Borsa Istanbul brought less than USD 150 million altogether since the beginning of 2018.

Market environment will reportedly be assessed in the first quarter

Information floated earlier in the media indicated Aydem was negotiating with creditors to reduce rates on the already restructured debt. The decision to float the renewable power firm will depend on the conditions in the first quarter of next year, according to the persons with knowledge of the matter.

Aydem Yenilenebilir inaugurated its 99 MW Akıncı hydropower plant in July. It is located in Tokat in northern Turkey.

Turkish market is volatile but investors favor green energy

There are currently serious risks for an IPO as the Turkish lira is has sunk to record lows, currently trading at 8.45 against the dollar, and the national economy is struggling. The war between Azerbaijan and Armenia and the ongoing conflict in Syria are among the most significant factors alongside the uncertainty in the presidential election in the United States.

On the other hand, green energy is getting the upper hand in investor bets. One month ago, solar and wind power plant operator NextEra Energy surpassed ExxonMobil in market capitalization and became the largest energy company in the United States. The renewables firm is valued at USD 143.6 billion according to the latest data, against USD 140.5 billion for the fossil fuel heavyweight.