Turkish company Zorlu Energy initiates IPO of its renewables subsidiary

The largest geothermal power plant operator in Turkey is about to raise funds through its Zorlu Renewables subsidiary at the domestic stock market with a capital increase and share sale.

Aiming to repay some of its debt and invest in the energy sector, Zorlu Energy (Zorlu Enerji) has submitted a request to Turkey’s Capital Markets Board for an initial public offering of shares in its 100% subsidiary Zorlu Renewables (Zorlu Yenilenebilir).

At the end of last year, the company operated a green electricity generation portfolio of 559 MW. It consisted of 305 MW in geothermal power, the biggest fleet of its kind in Turkey, 135 MW in wind power and 119 MW in hydropower. It should be noted that it has integrated a solar power plant of 3.75 MW in peak capacity with its Alaşehir geothermal power plant of 45 MW into a hybrid power plant.

Profit slump in 2023

Zorlu Energy posted TRL 8.9 billion in revenue for 2023. The sum is currently worth EUR 264 million, but the lira dropped 38% last year. The nominal figure came in 27.6% lower than for 2022. Gross profit slumped 57.1% year over year to TRL 1.5 billion, now EUR 44.6 million.

The company is listed on the Borsa Istanbul, where its stock surged just under 100% in the past year, but in lira terms. In the statement announcing that it applied to the market regulator for the approval of the prospect, Zorlu Energy said it would conduct the IPO with “some of the shares” through a capital increase and share sale.

In the draft document it revealed that 55% of the proceeds would be allocated for debt payments while 34% is for investments in the energy sector investments and 11% for working capital. Domestic individual and institutional investors are eligible to invest in Zorlu Renewables, the company added.

Opportunities for investments in electric cars, chargers

There are “serious opportunities” for investments, Chief Executive Officer Sinan Ak said last week. He highlighted electric vehicles and charging infrastructure as “the only sector currently growing” in Europe. Zorlu Energy is aiming to achieve zero emissions, the CEO pointed out.

Zorlu Holdings is a founding member of the national electric car manufacturer Togg, which stands for Turkey’s Automobile Joint Venture Group.